How to enter a Statutory Report Flag?
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Statutory Report Flags
A ‘flag’ is simply an indication for the payroll to use what is selected (flagged) to fill out the Statutory Report (tax forms). This is a One-Time Setup item of the Tax Declaration flag.
Statutory flags, if required, MUST be properly set up BEFORE statutory information is saved.
For Example:
- In the St. Lucia year-end statutory tax declaration form, Return of Remuneration Paid…and Tax Deducted (TD5), there are fields such as Travelling, Entertainment, Housing, etc.(illustrated below). In order for the payroll to know exactly which allowance/deduction codes are being used for the fields on this form, you must set up statutory flags. That is, you may have several allowances that constitute ‘Travelling’. Each of these allowance codes must, therefore, be ‘flagged’ so that at year-end, the payroll will consolidate these amounts and display the total in the Travelling field (box) on the TD5 Form.
- In the Trinidad and Tobago year-end statutory tax declaration form (TD4), there are fields (boxes) such as Travelling,Pension, Commissions, Taxable Allowances, Total Deductions . In order for the payroll to know exactly which allowance/deduction codes are being used for the fields on this form, you must set up statutory flags.For example you may have 4 allowances that constitute Travelling. Each of these 4 allowance codes must therefore be‘flagged’ so that at year-end, the payroll will consolidate these amounts and display the total in the Travelling field (box) on the TD4 form.
The steps to set up the flags are as follows:
- Select New Record for Statutory Report Flag.
- Enter Flag Details
Sample of St Lucia's TD5 Form
Enter Details for New Statutory Flag
We will demonstrate the setting up of the Statutory Report Flags for St. Lucia’s TD5 Form.
Click on the New Statutory Report Flag hyperlink and enter the necessary information as prompted.
Report Flag: Select the flag from the drop down list provided. You will notice that there are several options that reflect the forms of all the territories that are supported by HRplus. Please, therefore, be careful to select the flag based on the name of the Statutory Report for your territory, which is included for ease of reference.
Code Type: In the Code Type field, enter:
- A Allowances if you are flagging Allowances
- T if you are flagging Timesheets (Earnings)
- Other Income if you are flagging Other Income
- D Deduction if you are flagging Deductions
In this example, as we are setting up the flags for the Travelling Allowance, we will select
Code Field: The codes available are filtered based on the Code Type selected. e.g. In the example above, we have selected the Code Type of Allowances, therefore only allowances that have been entered in the application (via Maintenance>> Payroll Setup>> Allowances) are listed in the drop-box.
Repeat the process to flag other allowances/deductions/other income/timesheets. You can attach as many codes as you like to any particular flag.
Factor: The Factor field is used ONLY if you wanted a certain percentage of the allowances/deductions/other income/time sheets to be displayed on the tax declaration form. For example, if you wanted only 75% of the ITA allowance to appear on the TD5,you would enter 0.75 in the Factor field. Otherwise, set Factor to 1 ( use the default value) . Note, currently,there is no situation under Trinidad and Tobago tax laws that allow you to use a factor other than 1.
Employee or Employer: This field is used only for Deduction Code Types e.g. you may wish to show both the employee and employer contributions for pension.
Once you have setup your Statutory Report Flags (only to be done if necessary) then you MUST SAVE the Statutory Report for that changes made will be updated.
To see How to Save your Statutory Report, click on How to Save a Statutory Report?
Next, Check your data entry for the flags by using the following report:Reports>>Reports>>Statutory Reports>>Tax/NIS/HS Data>>Statutory Report Flags Listing
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