Ghana | Options to request for manual Year To Date tax calculation for terminated employees

Ghanaian companies may request for manual tax calculations for terminated employees during mid year.

Since the tax year in Ghana runs from January to December and the country uses the Month To Date (MTD) tax method, it is common to question whether a final payslip for an employee should be calculated using the averaging tax method.

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" company setting 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

      

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