Solution: New Tax Rule for Jamaica: Change from Smoothing to Non-Smoothing

HRplus has 4 options for calculating Taxes ( Smoothing, Smoothing Formula 2 - TT Only, Semi-Smoothing - TT Only, Non-smoothing ) which are used across all countries.  The Smoothing method is Cumulative and Non-Smoothing is Cycle by Cycle. There will now be a change for all Jamaican clients as they must now change their taxation method to Non-Smoothing. This will be an update specific to Jamaica only. 

These are the system codes and their values that must be implemented for the new tax rule to take effect.

To enter these system codes, follow the Navigation: System Configurations>>>System Codes; and select New Record. Once the entry is entered, save that record and enter the remaining entries as shown above. 

Further, the tax method will need to change from smoothing to non-smoothing. Please see below the navigation to change the tax method from Smoothing to Non-Smoothing:

Navigation: POWERPAY>>Maintenance>>Payroll Setup>>Pay Groups

The change to non-smoothing cannot be undone once the pay group's taxation method is change. Therefore, ensure to clarify with the client of this change before changing the pay group's tax method. Smoothing can be changed to Non-Smoothing but not vice versa.  

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