How do I set up Statutory Report flags? (Trinidad & Tobago)
In order for the Payroll to know exactly where to place the earning/deduction amount on the Tax Declaration form (TD4 in Trinidad and Tobago), each item on the form (Travelling, Pension, Commissions, Taxable Allowances, Total Deductions etc.) must be 'flagged'.
Flagging an item may be defined as marking the item for treatment in a specified way.
For example, there may be 4 allowances that constitute Travelling. Each of these 4 allowance codes must be flagged, so that, at year-end, the payroll will consolidate these amounts and display the total in the Travelling field on the TD4 form.
By default, with respect to the Trinidad and Tobago TD4 form, the payroll applies:
- All Earnings to box (3) Remuneration before Deductions.
- All taxable Allowances and taxable Other Income to box (6) Other Taxable Allowances - Other
As such, no statutory flags should be set up for these.
POWERpay>>Year End Close>>Statutories
Factor: enter 1 in this field.
In exceptional and rare circumstances, if a percentage of the allowances/deductions/other income/earnings is to be displayed on the tax declaration form, then enter that factor here.
For example, if only 75% of the A004 allowance is to appear on the TD4, then enter 0.75 in the Factor field.
Otherwise, set the Factor to 1.
At present, under Trinidad and Tobago tax laws, there is NO situation that allows you to use a Factor other than 1.
You may link as many Codes to a specific Report Flag as you wish. The system will consolidate the amounts and display the total in the respective field on the tax declaration form.
0 Comments
Add your comment