Payroll - Tax Rules Engine

customaware

I am looking at doing a payroll module and am wondering if anyone has a module for this already written in Aware that they are prepared to share or sell.

Needs to include a versatile Tax Rules engine, whereby the User can set up any complex tax rules that need to be applied.....

For example.....

Tax applies to TaxableSalary
Tax applies to (TaxableSalary less previous tax amounts) means taxes applied in specific order
Tax applied based on Thresholds. ie Tax = IF TaxableSalary * x% > ThresholdAmount THEN ThesholdAmount ELSE TaxableSalary * x%
Tax applied to TaxableSalary Bands
etc etc....

There are a myriad of different types and ways in which tax is applied and to what so it needs to be flexible enough to handle all circumstances.

If whole Payroll module, needs to accomodate a variety of Employee types. Staff paid monthly, twice monthly or daily. Wages paid hourly. Overtime rates etc

Or, any comments of suggestions would be helpful.

This is one of those situations whereby if Aware could evaluate a constructed string in a process it would be easy. But I don't see us getting that functionality anytime soon.

ACDC

When you take on a payroll system it comes with huge responsibilities. I think its definitely possible with AwareIM but if you going to do it then I believe that's all you will be doing.

I considered this at one time , and looked deeper into whats needed. Firstly you need to have a relationship with the tax authorities and get accreditation and approval from them - depending on which country . Secondly the tax laws change all the time. So you have to be on top of this and have the changes made by target dates which is very onerous for a year end or a new tax year especially if you have to add new objects. Thirdly there are a number of online players out there so your solution would have to be a game changer to get customers on board. - You need big balls for this 🙁

pureist

Probably easier to just stick with cash and remain in the black economy. :mrgreen:

BenHayat

If possible, stay away from Payroll software and anything to do with tax calculation. Been there and hated.

tford

That's why in the U.S. there are companies that do nothing but payroll and payroll taxes. Even then, not all of them do a great job at staying on top of all the changes.

Markfre1

I have a very sophisticated C/S Payroll system in an older version of Magic. Does all 50 states, city, state, local taxes, etc. Still works fine. However upon moving to the latest Magic Unipaas we converted everything but Payroll. It is basically an impossible task for a smaller company mainly because of all the electronic filing, and the differences between the Fed, State and Local Jurisdictions. Even Intuit and Microsoft do not even handle the forms and electronic filing but use a company called Atrix which integrates with your program and you populate data, and it files the forms electronically. Last I checked it was about 50K or more per year to use the service. Forget it, its a losing proposition and constant maintenance. Its' the worst app you can consider doing, and I'd rather walk on hot coals then even convert our current working app just to a newer version.

Mark F.

customaware

In this instance I will allow the echoes of sound advice overrule my blind stubbornness.

Thanx all.

Interestingly, for my Absence and Expense Claim SaaS system so many organisations ask..... can it do Payroll. Sounds like a missing need in so many companies.

Note: If anyone wants to have a play go to here and Sign on as New User...
https://ab-sense.com/app/absense.html

I have just converted this completely over to V7 from V6.... Still a few tweaks and minor issues but should get the gist.

Steps are as follows.... (Docs and video are still being done)

Register as a Tenant - You will automatically be on the FREE PlAN
Go to the Account Details Tab and change to ... for example MEDIUM PLAN (which includes Expense Claims)
If will ask for Credit Card Details - Don't worry.... you will not be charged (best to use 4242 4242 4242 4242
Create a Country and Entity
From the Country Form.....
Create Employee Types - at least 1 ie... Staff, Wages
Create Employee Locations - at least 1 ie... Head Office, Project Site, Warehouse
Create an Administrator - Remember the Login credentials.
Create at least 1 currency ... say USD or whatever.

Log out and then log back in as your Administrator
Edit you Country and Assign Default, Primary and Sceondary Currency (Can be all the same)
Add a Leave Type.....
ie....

Code: ALS
Name:Annual Leave Staff
Accumulation Type: ACCRUAL
Employee Location: Pick one you created earlier
Employee Type: Pick one you created earlier
Include In Leave Liability]

Create a Leave Detail Record...
Start Date: say..... 01/01/09 (if you want all the historical calcs then should be before your earliest starting employee)
End Date: leave blank
How many Days are Accrued Per Accrual Day: = 10/365 =0.0274 (assuming for example 10 Annual Leave days per annum)
Days to Qualify: 0
Leave Balance Expires: NEVE
Explanation: Annual Leave Acccrual Rate per day = 10/365 =0.0274

On Unassigned Employees Tab
Add New Employee - Remember Login Credentials
Check.... Employee Can Approve
Save the record
Then edit that Employee and Add an Employee History record (this will convert them from UnAssigned to Assigned)
Add Leave Assignment Record... ie assign them to your previsouly created ALS Leave from the Date that they started
Create an Approvers record from the date that they started... Use themselves as All approvers.

Log Out and then login as the employee.
They can Create an Absense Application, Expense Claim etc.
Once submitted it will apear on their Waiting for Approval Tab etc.

This is just a smattering and there is lots it can do but would be interested in constructive comments.

Let me know.... send email to absense@ab-sense.com

cishpix

Hello Mark,
I think your year combo box at Credit Card details still has small issue. After I choose the month but I cannot choose the year (see the below image) and I only see the combo box of year appear near on Month option.

customaware

Yes.... it was a late change I made Chris....

Fixed in next version.... You can still type in 2017 in the meantime...

Thanx

customaware

Whoops... Not Chris....

Sorry Suwandy...

Fixed now.

RLJB

We get the same question all the time about POS systems, my advice is find the best payroll system with an API and integrate with it. You overcome the buying hurdle and appear more established.