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Re: Employee pay

Posted by Adrian Crum on Jul 18, 2006; 10:35pm
URL: http://ofbiz.116.s1.nabble.com/Employee-pay-tp140712p140724.html

Si,

I know this is jumping way ahead, but I spend a lot of time working on our
payroll software here and I hope to inject some guidance before things progress
too far.

On withholding taxes, the Internal Organization should be tied to a Geo ID, and
whatever service is used to calculate withholding should be able to look up the
calculation routine for that particular Geo ID.

Our current non-OFBiz payroll software accomodates up to four withholding
calculations: federal, state, and two local. In Southern California, we only use
federal and state. Other states and countries would have different calculation
methods. So bottom line - the service has to be able to pick out the right
calculation routine(s) based upon where the employee worked.

Getting a payroll component included in OFBiz would benefit us here, but keeping
up with tax laws can be a problem.


Si Chen wrote:

> As a very quick look, you'll want to set up your company and your  
> employees as Party, PartyGroup/Person, and a PartyRole of Internal  
> Organization and Employee, then a PartyRelationship of employment.  
> Then you'd want to set up your employment tax agency as a Party and a  
> TaxAuthority.  There should probably be some PartyRelationship  between
> the tax agency and the company and the employee.  We'll  probably need a
> new entity for TaxAuthority_ similar to  TaxAuthorityRateProduct to
> model the tax rates for paychecks.  Then,  when you pay your employees,
> there should be a service to do the  withholding.
>
> If this is something you're going to work on and contribute back to  the
> project, we could probably help you with some of it.
>
> Si
>
>
>
> On Jul 18, 2006, at 9:09 AM, Daniel Carrasco wrote:
>
>> Thanks all,
>>
>> I will try to be more explanatory:
>>
>> I need an application that calculate the salary of an employee, the
>> salary is made up of several items,  they are grouped in two type:
>> taxable and tax-free, over the taxable items must be apply the
>> deductions.
>>
>> The most important deductions are 7% to health system, 12,5 % to
>> pension system, (depend of the kind of contract) 0,8% to unemployment
>> insurance, and the Tax.
>>
>> The process to get the Tax is:  the salary minus deductions(health,
>> pension, unemployment) is searched in with range of a table of factors
>> and discounts is it, then get the factor, rest the discount and that
>> is all, there is the tax.
>>
>> Example
>>
>> Taxable          
>>   Basic salary  1000
>>   Bonos             200
>>   Extra hours     100
>>                        1300
>>
>> Tax-free
>>   Eat allowance       100
>>   Family allowance  100
>>
>> Deductions
>>   Health              12,50%    162,5    (1300*12,50%)
>>   Pension              7,00%      91       (1300*7%)
>>   Unemployment  0,80%      10,4    (1300*0,8%)
>>                          Subtotal    263,9
>>
>>  Taxable-Subtotal                            1036,1     (1300-263,9)
>>  Factor (range 2)                               155,42   (1036,1*0,15)
>>  Factor-Discount=TAX                         55,42   (155,42-100)
>>
>>   TAX                         55,42
>>
>>   TOTAL                              319,32     (263,9+55,42)
>>
>>   Taxable+Tax-free            1500
>>   Deductions                       -319,32
>>
>>    TOTAL SALARY                1180,69
>>
>>
>> Table de Factors and Discounts
>>
>> Range     From     To      Factor     Discount
>> 1             0           500
>> 2             500       999    0,1          50
>> 3             1000     1499  0,15        100
>> 4             1500     1999  0,2          300
>>
>>
>> NOTE
>> 1) The porcent of health and pension system may be variable, depend
>> with system you contract.
>> 2) May be more items in Taxable and in Tax-free.
>> 3) The table of factors and discount change every month and It is
>> provided by the Tax Authority
>>
>>
>> I agree with BJ, more of this task are accounting. At this moment I
>> have company, tax authority and employee parties created, I'm trying
>> to understand and make a relationship between this parties, then I
>> will create the partie and roles of health system, pension system,
>> unemployment insurange.
>>
>> Thanks a lot!!
>>
>> Daniel
>>
>> 2006/7/17, Si Chen <[hidden email]>:
>>
>>> As a wild, wild guess--did you create the roles for your parties
>>> first, before trying to create a relationship between them?
>>>
>>> In general, please furnish more details about what happened.  It's
>>> very hard to figure out what is happening from so far away.
>>>
>>>
>>>
>>> On Jul 17, 2006, at 10:50 AM, Daniel Carrasco wrote:
>>>
>>> > I´m tring to assign a Employee to a Company,I tried do it with
>>> > relationships, but I couldn´t do it, can you help me??
>>> >
>>> > 2006/7/14, Si Chen <[hidden email]>:
>>> >>
>>> >> The TaxAuthority model with all the related entities should  allow
>>> you
>>> >> to do that.
>>> >>
>>> >>
>>> >> On Jul 14, 2006, at 1:41 PM, Daniel Carrasco wrote:
>>> >>
>>> >> > Thanks, I´m learning how to model the specific country tax on  the
>>> >> > pays of
>>> >> > employees with those entities
>>> >> >
>>> >> >
>>> >> > 2006/7/14, Si Chen <[hidden email]>:
>>> >> >>
>>> >> >> Don't add a new field.  Use the PartyTaxAuthInfo entity  instead.
>>> >> >>
>>> >> >>
>>> >> >> On Jul 14, 2006, at 12:21 PM, Daniel Carrasco wrote:
>>> >> >>
>>> >> >> > Hi all
>>> >> >> >
>>> >> >> > I am trying to develop a pay application, but I need to add a
>>> >> new
>>> >> >> > fields to
>>> >> >> > some entities, for example the company must have an ID
>>> >> assigned by
>>> >> >> > the TAX
>>> >> >> > authority, how can I make this?. I think that I should make a
>>> >> new
>>> >> >> > entity or
>>> >> >> > view entity that supports It. Is it right?
>>> >> >> >
>>> >> >> > Thanks a lot!
>>> >> >> >
>>> >> >> > Daniel
>>> >> >>
>>> >> >>
>>> >>
>>> >>
>>>
>>>
>
>