How can I calculate an employee's Professional Tax?

To calculate an employee's Professional Tax (PT), perform the following actions:

1. Update employee's location

   To update employee's location, perform the following actions:
   1. Navigate to Employee > Information > Position History. The Position History page opens.
   2. From the Search Employee search box, search for the employee whose designation you want to add. 
   3. Under the Location category, click Add.
   4. From the Category drop-down list, select the required location.
   5. From the Effective From dropdown calendar, select the date from which the employee is assigned the selected location.
   6. From the Effective To drop-down calendar, select the date up to which selected location is applicable.
   7. Click Save to add the required location to the selected employee.
      Note: In case, employee's location is unavailable, you can add the employee's location.
      
      

2. Map Professional Tax with the employee's location

   To map PT with employee's location, perform the following actions:
   1. Navigate to Settings icon > System Settings > Payroll > Profession Tax Location. The Profession Tax Location opens.
   2. Ensure that your employee's location is available on the Profession Tax Location page.
      Note: In case, employee's location is unavailable, you can add the employee's location to map PT with the employee's location.
      
      

3. Confirm the PT slab

   To confirm PT slab, perform the following actions: 
   1. Navigate to Settings icon > System Settings > Payroll > Profession Tax Slabs. The Profession Tax Slabs page opens.
   2. From the State dropdown list, select the state in which the employee is currently residing.
   3. From the Location dropdown list, select the employee's current location. 
   4. Ensure that the available tax slabs are correct. 
      Note: In case, you want to edit the PT slabs, raise the request for the same. If there are any changes in the amendment, greytHR updates the relevant slabs from the backend.
      
      

4. Ensure directors and physically challenged employees are excluded from the PT.

   To ensure that directors are excluded from the PT, perform the following actions:
   
   1. Navigate to Employee > Information > Employee Profile. The Employee Profile page opens.
   2. On the Employee Profile page, under the Personal Information, click the Edit icon.
   3. Ensure that the option Is Director is selected for all the directors of the company.
   4. Ensure that the option Physically Challenged is selected for the relevant employees.
   5. Click Save to exclude the relevant employees from the PT calculation.
      
      

5. Process Payroll

   To process payroll, perform the following actions:
   1. Navigate to Payroll > Process > Payroll Process. The Payroll Process Log page opens.
   2. Click Process Payroll to initiate the payroll processing process. The Payroll Process page opens.
      If you are familiar with the payroll processing process, you can also click Quick Process. Clicking the Quick Process button skips the checklist and directly processes the payroll. 
      Note: we recommend using the Process Payroll button especially if you are new to processing payroll.

Related Links:

• Product Update - To read our product update, click here.
• Video
  • To watch the video on PT, click here.
  • To learn more about greytHR, click here.