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Example: ANNUAL LEAVE BONUS DOES NOT EXCEED 70% of SALARY for MONTH BEFORE PRECEDING ONE
You pay annual leave bonus to the employee in May 2009:
- annual leave bonus in amount of 960.00 EUR
- gross average salary for the month before preceding one being 1,425.05 EUR
- 70% of gross average salary for the month before preceding one equalling 997.54 EUR (1,425.05 EUR * 0.7)
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Trying to calculate income tax prepayment on annual leave bonus, you have to consider provisions of Article 127 (income tax prepayment on income from employment) of the Personal Income Tax Act (ZDoh-2).
Do the following to calculate average income tax rate per monthly income:
|
1 |
last gross salary of employee in the period 2009-04 |
1.612,50 |
EUR |
|
+ 2 |
1/12 of taxed annual leave bonus amount (960 EUR annual leave bonus /12) |
80,00 |
EUR |
|
3= 1+2 |
gross monthly income |
1.692,50 |
EUR |
|
- 4 |
employee's social security contributions (only from the basis 1,612.50 EUR*22.10%)
|
356,37 |
EUR |
|
- 5 |
reliefs according to the Personal Income Tax Act - Zdoh-2 (1/12 × 3,051.35 EUR) |
254,28 |
EUR |
|
6= 3-4-5 |
Tax base
|
1.081,85 |
EUR |
|
7 |
income tax prepayment (rates for year 2009) |
224,17 |
EUR |
|
8=7/6 |
average income tax rate in % |
20,72 |
% |
Tax calculation on annual leave bonus amount:
|
1 |
gross annual leave bonus |
960,00 |
EUR |
|
- 2 |
employee's social security contributions |
0,00 |
EUR |
|
- 3 |
Reliefs according to the Personal Income Tax Act (Zdoh-2) |
- |
|
|
= 4 |
Tax base |
960,00 |
EUR |
|
5 |
Income tax prepayment using average rate (20.72%) |
198,91 |
EUR |
|
6=1-2-5 |
net annual leave bonus |
761,09 |
EUR |
1. SETTINGS
Setting up annual leave bonus:
2. NORMAL PAY SLIP
Create normal pay slip for period 2009-04 in Payroll Preparation (in
Document Types set P10 in Add Calculation Basis to Income Tax Basis)..
3. CALCULATED AVERAGE RATE OF INCOME TAX ON ANNUAL LEAVE BONUS
Enter amount of annual leave bonus in the Index field and select earnings type
REG (annual leave bonus).
The average income tax rate, which is in our case 20.27%, is used by default.
4. MANUALLY ENTERING INCOME TAX RATE FOR ANNUAL LEAVE BONUS
You can also enter income tax rate in the Index field and the annual leave bonus will be calculated accordingly.
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The income tax rate will only be used if you selected Use Average Tax Rate from Last Salary in
Document Types.
In order not to use income tax rate from Index field, 0.00 value must be entered in field.
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In accordance with the Instructions for Completing REK Forms (page 19, item, 8.4. Cumulative) issued by DURS (Tax Administration of the Republic of Slovenia), the period 06.YYYY (e.g. 06.2009) is always used in field Payout for Month under type of income 1090 - Annual leave bonus in
collective REK. That is. regardless of the payout date set in rhe
pay slip header. |