Tax Benefit: An employee enjoys a tax benefit when his tax liability is borne by his employer. This tax benefit is treated as a fringe benefit and is valued according to the specific Regulations to the Act.

Step 1: Go to Payroll

Step 2: Monthly Procedures

Step 3: EDF

Step 4: Choose the employee’s record

Step 5: Activate Tax on Tax Flag

Step 6: Insert the required % for Housing benefit

Step 7: Activate Tax on Tax Er %

Step 8: Click Save

Below are illustrations of Tax on Tax computation based on the new tax rates

PAYE Calculation Slip

Note: If Progressive Tax rate% and Tax on Tax rate% are different - the Tax Benefit is calculated as per the below illustration - In this example Progressive Tax is calculated at 14% and Tax on Tax is calculated at 16%

A detailed breakdown of sections A to I are illustrated below