This function is available for Zambia, South-Africa, Namibia, Lesotho, Botswana, Malawi and Swaziland.
Use the Year-end program tool to only create tax records for the current tax year, or to perform a whole tax year end. If you perform a tax year end, the system will also create the tax records.
Each active employee should have a tax record per tax year. A tax record is a line in the Tax info table in the Employees function, tab Addition, that contains tax data that can be used when a tax certificate for a previous tax year needs to be printed.
A tax record is created in the following circumstances:
- When a new contract (new contract with a new chrono contract number) is created in the Employment contracts function (Personnel administration > Personnel data forms > Employment contract).
- When you do a take-on for the current tax year. In this case, you use the Create tax records only function of the Year-end program tool (Payroll > Payslips > Tools > Year end program > Create tax records only).
- When you roll into the next tax year. In this case, you use the Year-end program tool by clicking OK (Payroll > Payslips > Tools > Year end program > OK).
The last two cases are described in more detail below.
Prerequisites
Refer to documentation Implementation
Screen management
Creating tax records only
If you use the Create tax records only function of the Year-end program, the system only creates tax records for the employees for the current tax year. A tax year end is not performed, and therefore no parameter values or contract fields are updated to the new tax year.
Creating a tax record means creating a line containing tax data in the Employees function, in tab Additional, block Tax info.
To create tax records only:
1. Select the applicable company.
2. Click Create tax records only.
3. The following message displays:
This will only create tax records for the current tax year. It will NOT perform a tax year end run. Continue? Please note that you will only be able to create tax records for the current year once.
Click No to stop the process.
Click Yes to proceed.
4. If you proceed with the process, the following confirmation message displays:
Process completed successfully.
Click OK.
5. A confirmation message containing the number of tax records created is displayed. For example:
7 Tax records created.
Click OK.
If you use the Create tax records only function for the current year more than once for the same company, the following information message displays:
0 Tax records created.
Performing a tax year end program
If you use the Year-end program tool by clicking OK, the system performs the whole program, that is to say it performs the following actions:
a) It updates the tax year end date and tax year start date in parameter values
If the year-end program is performed for all companies, the following parameters are set to the new values:
- The TAXENDAT – Tax year end parameter value (chapter PAY, group DAT) is automatically set to the end date of the new tax year.
- The TAXSTRDAT – Tax year start parameter value (chapter PAY, group DAT) is automatically set to the start date of the new tax year.
Before the system sets these parameters to the new values, this confirmation message displays:
A tax year end run has been performed for all companies and cycle parameters will be updated. Click on OK to continue.
If the year-end program has not been performed for all companies, you can still update the cycle parameters. In this case, this message displays:
A tax year end run has not been performed for all the companies yet. Do you want to update the cycle parameters now?
Click Yes if you want to update the parameter values even if the year-end program has not been performed for all the companies.
Click No if you want to stop the process.
b) It creates new tax records on the employee’s records
New tax records are created in the employee’s records, in tab Additional and block Tax info - only for the active employees in the new tax year who do not have a termination date in the current tax year.
c) It updates the tax year start date and tax year end date on the employment contracts to the new tax year
When you are in a pay month of the new tax year, on the employment contracts, in tab Payroll and block Tax info, the IRP5 start date and IRP5 end date fields are automatically set to the start date and end date of the new tax year.
d) It resets tax statuses on employment contracts
Some tax statuses reset on the employment contracts, in tab Payroll, block Tax info. Therefore, as soon as you are in the first period of the new tax year, certain tax statuses for specific countries reset automatically. The table below describes the previous and new tax statuses for the countries concerned by this change:
|
Country |
Tax status |
|
Botswana |
Directive % must reset to Resident. |
|
Lesotho |
Directive % must reset to Resident. |
|
Namibia |
Directive % must reset to Statutory tables. |
|
Swaziland |
Tax directive must reset to Statutory tables. |
e) It resets employee tax directive numbers, amounts and percentages on employment contracts
On the employment contracts, tab Payroll and block Tax info, the Directive number, Directive amount and Directive percentage fields are automatically reset when you are in a pay month in the first period of the new tax year.
To perform the whole tax year-end program:
1. Select the applicable company.
2. Click OK.
3. The following message displays:
This will create tax records for the current tax year and perform a tax year end run. Continue?
Click Yes to proceed.
Click No to stop the process.
4. Some of the following messages may display as appropriate:
- If any of the payslips are not posted yet, the following message is displayed stating the number of payslips not posted – figures are just examples:
- In case payslips for your company and other companies are not posted, this message displays:
There are 1 payslip(s) that have not been posted for company XXX and 1 for other companies. Do you want to continue?- In case payslips for other companies only are not posted, this message displays:
There are 2 payslip(s) that have not been posted for other companies. Do you want to continue?- In case payslips for your company only are not posted, this message displays:
There are 1 payslip(s) that have not been posted for company XXX. Do you want to continue?
Click Yes to proceed.
Click No to stop the process.
- If any payslips in any of the companies are not posted yet, the following message displays:
Please note that if cycle parameters are updated, it will prevent posting of payslips at a later stage.
Click OK. One of the following messages may display as appropriate:
- If the year-end process has been performed for all companies, the following message displays:
A tax year end run has been performed for all companies and cycle parameters will be updated. Click OK to continue.Click OK.
- If the year-end process has not been performed for all companies yet, the following message displays:
A tax year end run has not been performed for all companies yet. Do you want to update the cycle parameters now?Click Yes to proceed.
Click No to stop the process.
5. If you proceed with the process, the following confirmation message displays:
Process completed successfully.
Click OK.
A log file is displayed. It displays a confirmation message indicating how many employee contracts have been updated and how many tax records have been created. For example:
Process completed successfully. 8 employees tax cycle dates updated on contracts. 10 Tax records created.
You cannot run the tax year-end program more than once per company per year. If you run the tax year-end program for the same company twice in a tax year, the following message displays in the log file:
A tax year end run is already performed for this company. Process aborted.
Entry screen
Block number 1
| Company (field CPY) |
|
Select the company you want to create the tax records for or you want to perform the year-end program for. |
Current value