Tax on Tax for Solidarity Levy is applicable when Solidarity Levy is paid by the employer for the employee

• (1) Activate Tax on Tax flag through Employee EDF
• (2) Insert Solidarity Levy Er pdcode through Employee's Payments & Deductions (The Solidarity Levy Er pdcode is automatically generated by the system in the payments & deductions list)

To activate the Tax on Tax flag, Sicorax HRMS Payroll requires you to insert a new EDF record. Though the new EDF record does not mean that the employee has submitted a new EDF but it's purpose is only to add a new information to the existing EDF record

• Step 1: Go to Payroll

• Step 2: Monthly Procedures

• Step 3: EDF

• Step 4: Filter the employee record

• Step 5: Add a new line/record

• Step 6: Insert the date for Submitted Form On

• Step 7: Activate Tax on Tax flag (Once the Tax on Tax flag is activated, the tax on tax factor will automatically appear in column Tax on Tax Factor)

• Step 8: Insert all the necessary existing EDF details such as Total Exemption and activate any existing flags (if any) as per the previous EDF record

• Step 1: Go to Payroll

• Step 2: Monthly Procedures

• Step 3: Payments&Deductions

• Step 4: Filter the employee record

• Step 5: Add a new line/record

• Step 6: Insert a new transaction as shown below (The Solidarity Levy Er pdcode is automatically generated by the system in the payments & deductions list)

• Step 1: Perform Payroll Calculation

• Step 2: Click Checklist

• Step 3: Double-Click Solidarity Levy Calculation Slip

• Step 4: Click Preview

(Please note that we have been provided with the Tax on Tax Benefit formula/factor by the MRA as per below)

You will also find below an illustration of the PAYE Calculation Slip showing the Tax on Tax/Tax Benefit calculation