Relevant Data in Income Tax Prepayment Calculation

from 1 January 2005

For income tax prepayment calculation you have to provide:

1. income tax rates in the Income and Payroll Tax Rats. The currently valid rates are predefined:

   to 108,333.33 (452.07 EUR)	16% income tax rate
   from 108,333.34 (452.07 EUR) to 211,666.67 (883.27 EUR)	33% income tax rate
   from 211,666.68 (883.27 EUR) to 428,333.33 (1787.40 EUR)	38% income tax rate
   from 428,333.34 (1787.40 EUR) to 860,833.33 (3592.19 EUR)	42% income tax rate
   over 860,833.34 (3592.19 EUR)	50% income tax rate

2. When calculating income tax, enter general relief in Salary Parameters where you can find data from Tax Relief register. 
3. Enter any personal income tax relief in Relief panel in Employee Files. You can enter percentage values of personal relief for each employee. Let us for example say that for one dependent family member you are entitled to a relief of 1981.72 EUR (monthly amount 165.14 EUR).
4. In addition, employee contributions which are accounted and paid for are considered as relief when calculating income tax. Currently, accounted for contributions on regular work amount to 22.1%. But you must not forget that contributions are not paid for certain earnings types. Thus the amount of contributions is accordingly smaller (take for example unpaid absence).
5. In payroll you obtain gross salary amounts according to which income tax is calculated.

    

Set contributions for type of work in Earnings Types. But first you have to set Work Types. The accounted gross salary, from which income tax prepayment is calculated, includes earnings types from class A to F. So, contributions that can be accounted as cost (mileage and meals allowance, etc.) and deductions (self-imposed contributions, credits, etc.) are not included in gross payroll amount for calculating income tax.

Set contributions in Work Types. Three contributions are used in calculating income tax:

• AH - income tax author's fee, where the basis represents 90% of gross salary
• G0 - income tax on work contracts, where the basis represents 90% of gross salary
• DH - income tax on regular work, where the basis represents 100% of gross salary

Enter percentage of income tax in Municipalities register. That is, if it is calculated according to a fixed percentage value. Leave the field empty if income tax is calculated according to income tax rates. Therefore, the following values are already set for predefined contribution subtypes:

Set basis and/or percentage value of calculated income tax in Document Types | Payroll.

From 1 January 2005

For income tax prepayment calculation you have to provide:

1. Average salaries in the Republic of Slovenia which is used in calculating income tax for the current month. That is, you have to provide information about average salary for the month before last one. Hence when creating payroll for August 2000, use average salary of June 2000. Enter this in Average Salaries each month and then run calculation.
2. Income tax rates in the Income and Payroll Tax Rats. The currently valid rates are predefined:

   up to 50% of average salary	17% income tax rate
   from 51 to 100% of average salary	35% income tax rate
   from 101 to 150% of average salary	37% income tax rate
   from 151 to 200% of average salary	40% income tax rate
   from 201 to 300% of average salary	45% income tax rate
   over 301% of average salary	50% income tax rate

3. Set general relief for calculating income tax in Salary Parameters. The curren valid 11% general tax relief is already set which means that 11% of average salary is automatically considered as income tax prepayment relief.
4. Enter personal income tax relief in Employee Files. That is, you can enter percentage value of personal relief for each employee. For example for one dependent family member it amounts to 8% of average salary. This means that 8% of average salary is recognized as relief in calculating amount of income tax prepayment.
5. In addition, employee contributions which are accounted and paid for are considered as relief when calculating income tax. Currently, accounted for contributions on regular work amount to 22.1%. But you must not forget that contributions are not paid for certain earnings types. Thus the amount of contributions is accordingly smaller (take for example unpaid absence).
6. In payroll you obtain gross salary amounts according to which income tax is calculated.

    

Set contributions for type of work in Earnings Types. But first you have to set Work Types. The accounted gross salary, from which income tax prepayment is calculated, includes earnings types from class A to F. So, contributions that can be accounted as cost (mileage and meals allowance, etc.) and deductions (self-imposed contributions, credits, etc.) are not included in gross payroll amount for calculating income tax.

Set contributions in Work Types. Three contributions are used in calculating income tax:

• AH - income tax author's fee, where the basis represents 60 % of gross salary
• G0 - income tax on work contracts, where the basis represents 90% of gross salary
• DH - income tax on regular work, where the basis represents 100% of gross salary

Enter percentage of income tax in Municipalities register. That is, if it is calculated according to a fixed percentage value. Leave the field empty if income tax is calculated according to income tax rates. Therefore, the following values are already set for predefined contribution subtypes:

Method of Income Tax Calculation

First set basis and/or percentage value of calculated income tax in Document Types | Payroll.

See: Calculation of Tax Basis

See next topics for detailed treatment using any of the options:

• Include Only Current Calculation
• Use Average Tax Rate from Last Salary

and topic on calculating income tax for author's fees and work contracts.

As can be observed below, Income tax relief by law includes personal relief, general relief and accounted for contributions. Select in Document Types | Payroll whether to include it in income tax relief or not.

	For additional criteria in calculation of income tax basis see also Voluntary Supplementary Insurance.
	Non-resident workers are those for whom work permit number was entered. General tax relief CANNOT BE APPLIED in calculating income tax prepayment!

See PANTHEON 5.5 Guide:

• Payroll.

Related topics:

• Payroll.