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Employee Tax

Employee Tax in PrismERP is a comprehensive suite of tools designed to automate and manage every aspect of payroll tax calculation and compliance. It enables HR and finance teams to configure national tax rules, apply exemptions, calculate accurate monthly deductions, manage employee investment rebates, and generate detailed tax statements — all aligned with legal regulations and organizational policies.

1. Tax Rules Configuration​

Define and manage tax slabs based on nationality, gender, age, and disability. Configure income ranges with applicable tax rates, minimum tax amounts, and caps — integrated directly into payroll processing.

2. Salary Tax Calculation​

Automates income tax deductions using configured rules. Supports item-level taxability (taxable/non-taxable payroll items), progressive tax slabs, annual projections, and real-time payslip visibility.

3. Tax Exemption Policy​

Allows classification of payroll items or employees as fully, partially, or non-exempt from tax. Ensures compliance with statutory exemptions like disability benefits, housing allowances, or retirement income.

4. Investment Return Manager​

Captures and applies tax rebates based on employee-declared investments. Supports rule-based rebate calculations, fiscal-year-specific limits, and integration with salary tax calculations.

5. Tax Statement​

Generates yearly tax summaries per employee, including gross salary, taxable and exempt income, rebates, and monthly tax deductions. Useful for employee reference, audit trails, and authority submission.