Setting Payroll Item as a Fixed Income Tax Base

Purpose: Include additional remuneration (earnings) as a fixed income tax base to ensure the MTD calculation is the same as the fixed remuneration (salary).

Remember that flagging the additional earnings as a fixed income tax base will add to your taxable income to be higher which could result in the higher PCB/MTD.

Step 1

Navigate to Settings (1) > Payroll (2) > Payroll Item (3):

Step 2

When you create a payroll item (earnings), set the earning to be included 'As Fixed Income Tax Base' (4).

Step 3

You may check the last section of the payroll review to see if the earning that is pulled is recorded as a fixed-income tax base.