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PAYE Payroll Calculation for Nigeria using Formula

Hi,

Has anyone in here been able to successfully implement PAYE payroll calculation for Nigeria using conditions and formula?

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I have been able to achieve this successfully! thanks to @deatram for helping with the framework and @Fred1 for helping me decipher the missing piece in the puzzle. Indeed it wasn’t easy but it was worth it.:clap::clap:

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That’s good news

Would you mind sharing what approach you took ?

Regards

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There are two approaches actually… one which is a bit confusing (my first attempt) and one which @Fred1 used which is simplified. But the key is using condition field to satisfy the “IF” in the calculation and formula to calculate the tax payable for every tax step. I can’t really break it down in here as it is a bit long but i’m trying to implement it on my live server now and once i’m done i will post a screenshot.

@olamide_shodunke here you go:

In the tax payable as well as the consolidated relief, you will have to enter the “IF” condition. example:

There’s another way to enter the PAYE calculator:

But this seems a bit more complex to achieve monthly calculations. But it formed the basis for devising the simpler method shown in the above screenshots.

Let me know if you face any challenge.

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Really Cool

Thanks

Aren’t you using Payroll Period for this? What issues have you faced? I am trying Payroll Period and gives tax calculations that I don’t understand. e.g.
base = 500,000
Allowances = 150,000
Taxable salary = 190,161.42

Tax slabs defined as:

Hi

Can someone help me set PAYE for nigeria completely?

I found a way to set it up. Was hard but achieved.

It’s doable, Break down the steps from excel into simple statistical components and you will get a valid figure.

I saw all the attachments you provided previously. But I need the formulas for each component. Can you help?

I tried to break it down, I was successful in listing down the components but there is some problem with formulas for components and the structure.

I get the first statistical component by assigning this to a statistical component lets call it ‘CRA’,

gross_pay * 0.21 if gross_pay>20000000.0/12.0 else gross_pay*0.2+200000.0/12.0

Then I get the taxable income (‘TXA’) by evaluating

gross_pay-CRA-Employee pension-3200000.0/12.0

the Tax PAYE amount for that transaction can then be gotten as

TXA*0.24+560000.0/12.0

Note: some figures like Employee pension have to be fetched before taxes can be generated.

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@flexy2ky

Good day

I Was able to follow through with the earning

but gat stocked in the deduction. i would like you to help me with the condition for “tax payable 1, Tax payable 2 and tax payable 7”

below are my deduction on my excel sheet. how do i incorporate it on each tax payable

=IF(F2>=300000,3000007%,F27%)
=IF(AND(F2>300000,F2<600000),(F2-300000)11%,IF(F2>600000,30000011%,0))
=IF(AND(F2>600000,F2<1100000),(F2-600000)15%,IF(F2>1100000,50000015%,0))
=IF(AND(F2>1100000,F2<1600000),(F2-1100000)19%,IF(F2>1600000,50000019%,0))
=IF(AND(F2>1600000,F2<3200000),(F2-1600000)21%,IF(F2>3200000,160000021%,0))
=IF(F2>3200000,(F2-3200000)*24%,0)

hello @Ebuka_Joseph_Akeru

so i was able to follow through with @flexy2ky snip shot but gat stocked in the deduction. he made mention of “if condition” FOR EACH TAX PAYABLE but i cant seem to wrap my head around it

THIS ARE MY CONDITION OF MY TAX PAYABLE AND I WOULD LIKE TO INCORPORATE ON THE ERP

=IF(T1>=300000,300000 7%,T1 7%) Tax payable 1
=IF(AND(T1>300000,T1<600000),(T1-300000) 11%,IF(T1>600000,300000 11%,0)) Tax payable 2
=IF(AND(T1>600000,T1<1100000),(T1-600000) 15%,IF(T1>1100000,500000 15%,0)) Tax payable 3
=IF(AND(T1>1100000,T1<1600000),(T1-1100000) 19%,IF(T1>1600000,500000 19%,0)) Tax payable 4
=IF(AND(T1>1600000,T1<3200000),(T1-1600000) 21%,IF(T1>3200000,1600000 21%,0)) Tax payable 5
=IF(T1>3200000,(T1-3200000)*24%,0) Tax payable 6

PAYE (T1+T2+…T6)/12

BTW… salary component pension PF = P/12 dont show on my salary slip even thou its not ticked as a statistical formula

Kindly assist

cc @Fred1 @deatram

Can you share screenshots of your deduction conditions and formula?

DEDUCTION

T2


T3

I SEE THE SNIP AINT SHOWING THE FULL CONDITION

BASICALLY THIS ARE THE CONDITIONS FROM T2 - T7
I DIDNT PUT ANYTHING ON THE FORMULAE

T2: 300000*.7 if (CI>= 300000 ) else CI*.7 if (CI<300000) else 0
T3: (CI-300000).11 if (CI>300000 and CI<600000) else 300000.11 if (CI>600000) else 0
T4: (CI-600000)0.15 if (CI>600000 and CI<1100000) else 500000.15 if (CI>1100000) else 0
T5: (CI-1100000)0.19 if (CI>1100000 and CI<1600000) else 500000.19 if (CI>1600000) else 0
T6: (CI-1600000)0.21 if (CI>1600000 and CI<3200000) else 1600000.21 if (CI>3200000) else 0
T7: (CI-3200000)*0.24 if (CI>3200000) else 0

@flexy2ky

when i couldnt see the deduction table on the slip, i knew there was something wrong with the deduction btw the earning is ok

You are doing it all wrong. Formula is what calculates the deduction. Condition is what is used by the formula to base its calculation on.

Check out my screenshots here to see how to combine conditions and formula to calculate the deductions. Using if and else in condition does not calculate anything. Essentially the condition handles the IF and the result of the IF is handled by the formula. It is the formula that eventually defines the deduction amounts and because you’re not using the formula you’re not defining any deduction hence your deduction will be empty.

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alright

going with ss1 what are your conditions for tax payable 1 , tax payable 2, tax payable 3, tax payable 4, tax payable 5, tax payable 6, tax payable 7 ?