To set up an extra tax deduction for an Employee, you need to set up a Tax Adjustment and attach it to the Employee's Additions & Deductions. If the Tax Adjustment code already exists, proceed to the Attach the Tax Adjustment to the Employee section.
Create the Tax Adjustment code
Go to Payroll, Maintenance, General, Additions and Deductions.
Click Add.
Enter a Code, Description, and Shortcut key.
Select Tax Adjustment as the Category.
Select the Type.
Make any other parameter selections required, e.g., if the Type is Percent, you will need to select Hours Type, etc.
Click STP Reporting tab.
Select Included in Tax Paid for the Payment Summary field in STP Phase 1.
Select PAYGW as the Reporting Group in STP Phase 2.
Click OK to save.
Note: Percentage Type Codes are calculated based on the percentage of the amount processed for all Hours Types, Other Leave Reasons, and User Defined Leave that have been included. The value will not round up or down and therefore include cents. If you don't want to calculate cents, set the Tax Adjustment up as an Amount Type. You cannot use Process Deduction Calculation or Process Loading for Tax Adjustments to include other additions or deductions in the calculation.
Attach the Tax Adjustment to the Employee
Go to Payroll, Maintenance, Employees, Employees.
Edit the Employee who is paying the additional Tax.
Select Additions & Deductions.
Click Add.
From the Addition / Deduction drop-down down select the Tax Adjustment code.
Untick Use Default.
Enter the Amount per Pay or Percent.
Click OK.
Then click OK to save the Employee record.