FSS Calculation Report

Talexio
Talexio
  • Updated

Overview

An FSS Calculation Report is a report which specifies the tax works of each employee in a payroll. This report can be downloaded in PDF and you may choose to send this to your employees when they query their tax calculations.

For information on how tax calculations work, check this out

 

Permissions

You will require the Manage Payroll permission in order to generate this report.

Where can I generate the report from?

You may generate this report from within the specific payroll you are working on. From within the payroll, click on Reports and then on FSS Calculation Report.


What options do I have when downloading?

Once you have completed one of the above 2 steps, you will have the option to select whether to download such a report for an individual employee or for all the employees in the period. Where you select multiple employees or multiple periods, you may select whether the report is downloaded as a single PDF, or as multiple PDFs stored within one ZIP file.

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Understanding the report

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  1. Information on the payroll period and the employee.
  2. Income from previous employment: this refers to income earned by the employee during a past employment (within the same year as the payroll in question). This information is inputted in past payroll data under the employee's details section. For more information on that, click here.
  3. Current employment: this refers to income earned by the employee at your company this year (excluding the current payroll).
  4. Current payroll: this is the income from the current payroll.
  5. Totals: here, the amounts in points 2, 3, 4 are added up.
  6. Annual projected gross: each payroll period, an employee's annual income is estimated using the income earned so far. That is done by grabbing the total taxable income to-date (including the current payroll) divide by the number of payrolls (5 in this case would be used if we are using a monthly payroll and the current payroll is May) times the number of periods in a year (12 in the case of a monthly payroll, 13 in the case of a four weekly payroll, etc). That results in the projected annual income, and this amount is placed within a tax bracket.
  7. The annual tax is calculated using the projected annual income.
  8. The tax payable this month is calculated as follows: projected tax due/number of periods in a year (12 in the case of monthly payrolls) * current payroll (5 in the case of May in a monthly payroll) - tax paid so far.

Why does the estimated annual income differ from my actual annual income?

The estimated annual income is not necessarily the same as your annual income, and this figure may change over time (if you are not paid the exact same gross amount each period). 

If you were to earn a different amount in a particular salary, then the estimated annual income will increase, resulting in higher tax. If, however, in subsequent months, the gross salary goes down to how it was before, then the tax will also adjust. This means that your tax is always being adjusted to ensure that you do not over/underpay tax.

 

Key words: tax report 

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