Add a Tax Bracket in HRM

Define income-based tax brackets to support progressive payroll deductions, salary calculations, and compliance with local or custom tax policies.

🔐 Access Control

• Only Admin users or staff with payroll setup permissions can add or edit tax brackets
• From the Dashboard, use the side menu to navigate: HRM → System Setup → Tax Brackets

🧭 Step-by-Step: Add a Tax Bracket

1️⃣ Open Tax Bracket Setup

• Navigate to the Tax Brackets section under System Setup
• Click the ➕ icon to open the “Create Tax Bracket” form

2️⃣ Enter Tax Bracket Details

• From*: Enter the lower bound of the income range (e.g. 0, 50000)
• To*: Enter the upper bound of the income range (e.g. 50000, 100000)
• Fixed Amount*: Enter the base tax amount applied once this bracket is reached (e.g. 10000)
• Percentage*: Enter the percentage rate applied to income within this bracket (e.g. 15%)

Use consistent logic across brackets to ensure accurate payroll deductions.

3️⃣ Save the Tax Bracket

• Click Create to add the bracket
• The new entry will appear in the list with action icons:
  • 🖊️ Edit
  • 🗑️ Delete

✅ Best Practices

• Ensure brackets are non-overlapping and sequential (e.g. 0–50000, 50000–100000)
• Use fixed amounts to reflect base tax obligations or prior bracket carryovers
• Apply percentage rates to income within the bracket, not total salary
• Review brackets annually to reflect policy changes or inflation adjustments
• Avoid gaps or overlaps — they can cause payroll calculation errors