DRC | How do I configure the system so that employees' tax on their final payslip (at the end of the tax year or when an employee is terminated) based on the Year To Date tax calculation?

The DRC uses the Month To Date (MTD) tax method and is common to question whether a final payslip for an employee (at the end of the tax year or when an employee is terminated) should be calculated using the averaging tax method (annual tax regularisation).

Because bonuses and allowable reliefs are taxed differently, in order to verify whether an employee's statutory deductions are accurate, the YTD tax method option must be used when calculating an employee's taxes based on their final payslip.

The "do a ytd calculation in dec and for termination" checkbox can be enabled on the Statutory Fields tab on the Basic Company Profile screen to validate the above logic.

      Navigate > Configuration > Basic Settings > Company Settings > Basic Company Information > Statutory Fields > Statutory Fields

      

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