Setting up taxable income and marginal income is essential for ensuring accurate tax calculations in Workstem. This guide outlines the steps to configure these settings, including editing income adjustments.
Steps to Set Up Taxable Income and Marginal Income
Step 1: Configure Pay Items
Before setting up taxable or marginal income, ensure that the relevant Pay Items are created and configured correctly.
Navigate to [Payroll] > [Pay Items].
Add or edit pay items as needed to reflect your organization’s payroll structure.
Step 2: Access Salary Tax Settings
Go to [Tax] > [Setting].
Click on [Salary Tax] to open the tax configuration page.
Step 3: Edit Taxable Income or Marginal Income
Locate the relevant Setting for taxable income or marginal tax income.
Click [Edit] next to the desired section:
Taxable Income: Configure items or adjustments that contribute to taxable income.
Marginal Income: Configure items or adjustments for marginal tax income.
Step 4: Set Income Additions or Deductions
Within the Edit section, you can:
Add Income Additions (e.g., bonuses, allowances) that increase taxable or marginal income.
Add Income Deductions (e.g., salary sacrifice, deductions) that decrease taxable or marginal income.
Save the changes to update the settings.
By following these steps, you can effectively configure taxable and marginal income settings in Workstem, ensuring accurate and compliant payroll processing. For further support, refer to Workstem’s help center or contact customer service.