Configure Income Tax Withholding

Important: this article is aimed at Endalia HR users with an Administrator profile.

Based on experience and knowledge, we know that the Income Tax is a financial provision through which every citizen must contribute to the maintenance of public expenditure. If you want to learn how to navigate this sometimes tricky sea, pay close attention to this article.

Here you will find:

• Configure Income Tax Withholding
• Process Video 

Configure Income Tax Withholding

1. Within the Configuration hub, click on Payroll > Income Tax Withholding

2. On the next screen, called Module Settings: Payroll, you have all the necessary information to adjust parameters. At the top left corner, the Add Configuration button allows you to customize the different profiles, which you can see immediately below, organized into a single column. Within each of them, there are various functionalities, such as Add (to change the name and status of the profile), Duplicate, and Delete. Please note that the default profile is what the system will use for Income Tax configuration unless you specify otherwise.
3. To correctly set up this functionality, you have two tabs with their corresponding sections. The first one, Configuration, has the following management options:

• Salary: here you can enable the different options or select them all at once; this refers to the "Entry on January 1st" option (if you choose this path, to calculate an employee's income tax, this date will be used as a reference instead of their actual hire date), as well as "Ignore contract terminations" (to assume that the employee will be in the company all year for calculation purposes). If you enter a percentage increase in the Income Tax, it will apply to the entire default profile.
• Variable: to consider variable payments in the last 12 months or in the present fiscal year (current year).
• Flexible: to account for flexible compensation received in the current year or not applicable to the employee.
• Bonus: with the different options; actually applied, Bonus target (as reported in the salary) or in the last 12 months.
• Regularization: to perform it always (regardless of variation), or under specific conditions.

Once the changes to this tab are made, you must click the Save changes button or, if you switch tabs without saving, the system will notify you through a modal pop-up of the possibility to exit without saving or continue editing.

In the second tab of this screen, Bonus Concepts, you can specify them via a custom menu. To add them, click the Add button available on the toolbar. 

In the modal window presented next, use the search function to distinguish concepts or select them from the list. Finally, accept the changes by clicking the Save button.

Note: When you have a profile different from the one preloaded by the system (called "default"), a third tab, named Application, will appear. Using the Add companies button, you can select specific companies to which you want to apply the configuration or Add employees to perform this action on specific workers. Follow the instructions present in each modal, and remember to always click Save changes to solidify your preferences.  

Process Video

We showcase this functionality in just a few seconds:

Still have questions? Have a look at the following related articles:

• Module Options

• Generate Concepts