Questions on labor management and payroll

[marc2]

1. How do I take into account the number of dependents? It seems that this is not being picked up for the salary calculations. I found a tick box under Settings->Payroll->Parameters where it says "Number of dependants from "Family members" list". Is that sufficient? Do the dependents have to have Latvian persons kods or can they live anywhere in the world?

2. I guess there is a non-taxable minimum for the PIT part for 2022. 500 Euros per month or 6000 euros for the full year. How do I take this into account? The employeer's SMSC seems to be unaffected by all these number, but the employee contribution is significantly lower. Is the non-taxable minimum for the number of months that a salary was paid out or does it cover the whol year regardless?

If the salary is variable each month I guess the employee will just file a tax return sometime in 2023 and settle the differences with the state without my involvement? It looks like we can just wing it right and input the percentages we estimate to be true for the full year?

[marc2 · Accepted solution]

The deductions that the company has to do is different depending on this. So I guess the first step is for the employee to something in the EDS system - create a tax booklet that we then follow in the payroll system?

I checked the EDS system and it does not seem to be possible to add foreign dependants.

[Gunta Germane]

The non-taxable minimum and the benefits for dependants may be applied when looking at the data in the ESS system:

1. EMPLOYEE

your tax book lists your firm as the employer to whom the tax book has been submitted

2 EMPLOYER - YOUR FIRM

Enter the VID EDS system

to the left - REPORTS

Top - All reports

Payroll Tax Ledger Details

submitted payroll tax books data

Books ---- Effective

period - This Year

Tax incentives “Do not display tax benefits that existed before the period stated in the report”

Data Display - Anybody

You can only apply the relief shown here.

If there are no records here - A SIGN OF HORIZONĀ FOR ALL EMPLOYEES - NO TAX BOOK

But I previously wrote that proper programming for a given company is usually carried out by a program consultant. IIT table; Soc table and special cases where each change in the legislative framework requires the new information to be recorded in the program so that the computer understands what mathematical actions are to be performed for the correct salary calculation.

given that you are completely vague in English, whether wages are subject to the legislation or other legislation of the Republic of Latvia.

[Gunta_AlianseTM]

Kāds sakars ar darbinieka gada ienākumiem? Ja ir  sniegta nodokļu grāmatiņa, tajā ir norādīts gan minimums mēnesī, gan apgādājamiem

Ja apgādājamo nav, tad tie arī nav piešķirti VID un nav nekāda sakara ar citām valstīm