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How can admin calculate employee's professional tax?

Product Content Team
  • Updated

The professional tax is a fixed amount or based on a slab system, depending on the individual's income or monthly salary. The tax is deducted by the employer from the employee's salary and remitted to the state government.

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

  1. Update employee's location

    To update employee's location, the admin must perform the following actions:
    1. From the greytHR Admin portal, 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, the admin must perform the following actions:
    1. From the greytHR Admin portal, 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, the admin must perform the following actions: 
    1. From the greytHR Admin portal, 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, the admin must perform the following actions:
    1. From the greytHR Admin portal, 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, the admin must perform the following actions:
    1. From the greytHR Admin portal, navigate to Payroll > Process > Payroll Process. The Payroll Process 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.

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Related Links:

❓FAQs- To read more FAQs about Professional Tax, click here.

📃Documentation- To read more about Professional Tax, click here.

▶Video- To watch more videos on greytHR Admin portal, click here.

📢Product Update- To read about the product update, click here.

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