By creating a salary component for Tax and checking ‘Variable Based On Taxable Salary’ the component is successfully calculated based on the Tax slabs configured in Payroll Period on all the total taxable salary (applied only on earning components).
The problem is that I want the tax to be applied after another salary component (social insurance) is deducted from the total salary.
I can do this if I write the formula in the Salary Structure manually but I’m trying to do it using Payroll Periods and Tax Slabs if possible.
An example equation to illustrate what I’m trying to do:
Net Pay = Basic + Housing + Transportation - Social Insurance - Tax
Tax should be (Basic + Housing + Transportation - Social Insurance) * 15%
What I’m getting is Tax = (Basic + Housing + Transportation) * 15%
Is there a way to do that?