Adjusting the tax-free amount of salary payouts is now much easier. In the case of payouts with the same TSD code, it is now possible to enter a negative tax-free income for correction purposes.
Payroll correction – payouts with the same TSD code
A typical scenario is when an employee receives vacation pay in advance and then a regular salary, resulting in the allowed threshold for tax-free income being exceeded. How to correct this?
This correction can be made on a worker’s salary payout row. The salary will display a notification indicating how much the tax-free amount has been exceeded (a negative value).
This value needs to be entered on one of the payout rows in the same period (vacation pay or employment contract).
This way, the tax calculation of the period’s payouts will be adjusted, and the employee’s net payout sum will also be reduced.
Payroll correction – different TSD code payouts
It is important to note that the correction of the tax-free income by entering a negative amount is only possible for payouts of the same type (i.e., with the same TSD code). Examples of such payout types include:
- Employment income
- Vacation pay
- Additional fee
- Study leave pay
If there are payouts with different TSD codes in the same month and the tax-free allowance is exceeded with these payouts, the correction should be done as follows.
Namely:
- Correct the original salary by reducing the tax-free amount.
- Correct the bank payment associated with the first payout (indicating that part of the second payout has been paid).
It is important to note that entering a tax-free amount greater than the calculated amount is not allowed. If a larger amount is entered, the incorrect amount will be automatically overwritten with the correct value. Entering a lower amount than the calculated amount is allowed.
***
If you have any questions, please email us at info@smartaccounts.eu or call 660 3303.
