Settings Salary Types

Copy the family allowance wage type (‘Allowance’ type, ‘positive’ calculation type) and assign a new wage type number. For example, the wage type name is “Family allowance paid by FAK”. The «H» code must be selected for the wage type when coding the withholding tax. The amount is neither included in the taxable base nor in the withholding tax base, but it must be taken into account for the rate-determining income.

Since a check mark is set for gross wage and tax liability in the “Child allowance” output wage type, a check mark must be set for the new wage type for:

· Gross Salary

· Tax liable

· Income Tax liable

Only the check mark for “IT rate determination" may not be set.

Check the entry in the translation and adjust it with the desired texts. It will be printed on the payslip.

Go to the “Child allowance” wage type and record the newly set-up wage type “Family allowance by FAK” paid as the subsequent wage type with the amount factor of -1. Unhide the “Child allowances settlement for direct payments” column and activate it by setting the check mark.