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—		spay:hrmsprocguide:fair_share_contribution_with_tax_benefit [2026/03/05 10:04] (current) ndomingue created
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		+	============Fair Share Contribution with Tax Benefit===============
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		+	* Below is a PAYE Calculation Checklist including the Fair Share Contribution where the Tax Benefit applies.
		+	* Please refer to the respective Illustrations, which provide a detailed breakdown of the calculation.
		+	* The illustration steps indicate the order in which the calculations and figures should be verified.
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		+	{{:spay:hrmsprocguide:paye_calc_feb_26.png|}}
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		+	*  → Check the **Pay Period**: In this example, the PAYE Calculation Checklist is for the month of **February 2026**
		+	*  → Check the section **“Your PAYE Particulars”** : In this example, the employee **has submitted an EDF in August 2025** and **enjoys a tax benefit (when his tax liability is borne by his employer). This tax benefit is treated as a fringe benefit**
		+	*  → Check the **Emoluments for the month**, for example: Salary
		+	*  → Check the **Total emoluments paid in previous months** , which in this example, it refers to the emoluments from August 2025 to January 2026, since the PAYE Calculation Checklist is for the month of February 2026.
		+	__**  Verification of Tax benefit** __
		+	*  → **Manually calculate the emoluments and chargeable income (exclusive of tax benefit) **
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		+	Excel illustration
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		+	{{:spay:hrmsprocguide:step1_calculate_chargeable_income_wo_tax_benefit_.png|}}
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		+	*  → **Verify the tax (PAYE and FSC) exclusive of tax benefit**
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		+	Excel illustration Tax PAYE calculation (exclusive of tax benefit)
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		+	{{:spay:hrmsprocguide:step_2_calculate_tax_paye_at_progressive_scale.png|}}
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		+	PAYE Calculation Checklist illustration Step 3
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		+	{{:spay:hrmsprocguide:step3.png|}}
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		+	Excel illustration Tax FSC calculation (exclusive of tax benefit)
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		+	{{:spay:hrmsprocguide:step_3_calculate_tax_15_fair_share_contribution.png|}}
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		+	PAYE Calculation Checklist illustration Step 4
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		+	{{:spay:hrmsprocguide:step4.png|}}
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		+	Excel illustration Total Tax (PAYE and FSC) exclusive of tax benefit
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		+	{{:spay:hrmsprocguide:step_4_total_tax_payable_on_the_emoluments_exclusive_of_tax_benefits_.png|}}
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		+	*  → **Use the Total Tax charged (exclusive of tax benefit) to verify the additional tax (PAYE and FSC) payable on the tax benefit**:
		+	*  → ** That additional tax payable, tax borne by the employer, becomes itself a tax benefit on which the additional tax payable is calculated again. The process is repeated until the additional tax payable is near zero**
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		+	Excel illustration Tax charged on PAYE benefit
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		+	{{:spay:hrmsprocguide:step_5_calculate_additional_tax_at_20_on_tax_benefit.png|}}
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		+	PAYE Calculation Checklist illustration Step 5
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		+	{{:spay:hrmsprocguide:step5.png|}}
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		+	Excel illustration Tax charged on FSC benefit
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		+	{{:spay:hrmsprocguide:step_6_calculate_additional_tax_at_15_on_tax_fsc_benefit1.png|}}
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		+	PAYE Calculation Checklist illustration Step 6
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		+	{{:spay:hrmsprocguide:step6.png|}}
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		+	Excel illustration Total Tax (PAYE and FSC) benefit
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		+	{{:spay:hrmsprocguide:step_7_total_tax_benefit.png|}}
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		+	PAYE Calculation Checklist Step 7
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		+	{{:spay:hrmsprocguide:step7.png|}}
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		+	*  → **Add the Tax Benefit (PAYE and FSC) to the emoluments for the purpose of calculating the chargeable income (inclusive of Tax benefit)**
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		+	Excel illustration
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		+	{{:spay:hrmsprocguide:step_8_add_tax_benefit_to_emoluments_calculate_chargeable_income.png|}}
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		+	PAYE Calculation Checklist illustration Step 11
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		+	{{:spay:hrmsprocguide:chargeable_income_inclusive_of_tax_benefit.png|}}
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		+	*  → **Use the chargeable income (inclusive of tax benefit) to verify the tax (PAYE and FSC) inclusive of tax benefit**
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		+	Excel illustration Tax (PAYE) inclusive of tax benefit
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		+	{{:spay:hrmsprocguide:step_9_based_on_the_new_chargeable_income_calculate_tax_paye_at_progressive_scale.png|}}
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		+	PAYE Calculation Checklist illustration Step 12
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		+	{{:spay:hrmsprocguide:step_12.png|}}
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		+	Excel illustration Tax (FSC) inclusive of tax benefit
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		+	{{:spay:hrmsprocguide:step_10_based_on_the_new_chargeable_income_calculate_tax_15_fair_share_contribution.png|}}
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		+	PAYE Calculation Checklist illustration Step 13
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		+	{{:spay:hrmsprocguide:step_13.png|}}
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		+	*  → **Verify the Total tax withheld in previous months and **
		+	*  → **Verify the Tax to be withheld in the month**
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		+	Excel illustration
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		+	{{:spay:hrmsprocguide:steps_14_and_15.png|}}
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		+	PAYE Calculation Checklist Step 14 and 15
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		+	{{:spay:hrmsprocguide:step_14.png|}}
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