Navigate to Tax Settings.
Enable "Payroll Taxes and Contributions Accounting" to account for taxes and contributions based on employee earnings.
New GL accounts are categorized under the Tax Payables and Tax Receivables sections by default.
Governments in the UAE and other GCC countries provide pension schemes for working citizens. In the UAE, the Pensions and Social Security Authority (GPSSA) manages pensions and social security for eligible employees.
UAE Nationals (holding a family book).
GCC Nationals (from Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman) working in the UAE.
Navigate to Tax Settings.
Enable "Payroll Taxes and Contributions Accounting" to account for taxes and contributions based on employee earnings.
New GL accounts are categorized under the Tax Payables and Tax Receivables sections by default.
Go to HR and Payroll → Create a new Accrual and Deduction Type.
Amendments introduce new tax types and contributions, which are managed in a separate tab. Due to new Accruals/deductions subtypes, Payroll calculations and transactions are stored in separate dedicated tabs.
Taxes and Contribution Payer- Taxes can be paid by either the employer or the employee. The employer is responsible for directly remitting the tax to the tax authority. If the tax is employee-paid, it is deducted from their salary.
For example, if the contract salary is 10,000, income tax is deducted, and the employee receives the net amount after tax.
Percentage of Planned Earnings – Applied to the salary amount specified in the contract.
Percentage of Actual Earnings – Calculated based on actual income earned.
Fixed Amount – A predefined tax amount specified in the contract. This data is sent to the portal, and the same amount is calculated every month, remaining unchanged throughout the year. It is carried forward annually. If the contract changes, the authorized person must manually update it in the portal.