The Inland Revenue is presenting a Web Form Calculator version of the FSS Spreadsheet.  The spreadsheet may still be downloaded from the web services page of the Inland Revenue.  This ‘Help’ is mainly intended for use with the Web FSS Calculator but may also be referenced when using the spreadsheet.

 

The calculator supports the FSS calculation for those payers effecting payments on a monthly basis.

 

Information on the Fringe Benefit Value (FBV) categories is available from the Tax Guide for the valuation of ‘payments in kind’.

 

The Year of payment defaults to the current payment year, however one may select a previous year to check on past tax calculations. 

 

Data from previous employment

 

This section mostly applies to those individuals who changed their employment during the year of assessment.

 

Any income earned from previous employment should be entered in its relevant field. Any car allowance given as cash to the employer as a fringe benefit should be entered in the ‘Category 1 Car Allowance’ field. The value of any other fringe benefits earned from the company should be entered under their respective field. These include a company car, assets or other items.

 

Tax paid while still employed with the previous company should be keyed in the ‘Tax paid’ field.

 

FSS Workout

 

This section provides the actual spreadsheet for the year of assessment in question.

 

The status that is chosen (M–Married, S-Single) refers to the tax rates that will be used in the tax deduction calculation.

 

For each pay period enter the monthly income earned. If the income earned from pay period 2 to pay period 12 is the same and similar to the income earned in pay period 1, click on the button with a cross sign on it (next to pay period 1 emoluments field), and automatically the same income will be copied to all the other pay periods. The same applies to ‘Cash category 1 car allowance’ field, ‘Category 1 Car FBV’ field, ‘Category 2 Assets’ field and ‘Category 3 Assets’ field.  This feature may be used to calculate the total tax payable for a year in advance. (Remember to include the statutory bonuses paid in March, June, September, and December).

 

If any cash car allowance is given as fringe benefit, key the amount earned for each pay period. If the same amount applies for each month, the button with the plus sign on it can be used. The same applies for any non cash fringe benefits in terms of a car, assets or other items.

 

At the end of each column, the total amount of that column is displayed.

 

Another column which is also displayed under the ‘FSS Workout’ section is the Emol + FBV YTD (Emoluments + Fringe Benefit Values Year to date). The field represents the total of the following:

 

Periodic emolument for that pay period                               +

amount in column 1 of cash category 1 car allowance                –

second column of cash category 1 car allowance                          +

amount in category 1 car FBV                                                +

amount in category 2 Assets                                                 +

amount in category 3 Other.

 

Furthermore, each pay period is added with the previous one.

 

Example: Total amount of Emol + FBV YTD in pay period 1 is added with the total amount of Emol + FBV YTD in pay period 2. Their total amount is then displayed in pay period 2. The same applies to all other pay periods.

 

The tax due field displays the tax that is supposed to be paid monthly. Tax is worked according to the FSS Main Cumulative Method which results in accurate annual tax deductions.

 

This method involves the calculation of tax due each pay period, based on the tax already deducted during the year and a projection of annual emolument income.  This method therefore relies upon the accurate maintenance of total emoluments and tax deducted information for each payee throughout the year.

 

The FSS Main Cumulative Method works by performing the following steps each pay period:

 

Calculation of:

 

·         The projected annual emoluments

 

Total Emoluments up to and including the Current Pay Period divided by the Current Pay Period Number, multiplied by Number of Pay Periods in the Year.

 

·         The projected annual tax due

 

Match the Projected Annual Emoluments to the appropriated tax band. Multiply the projected annual emoluments by the tax rate for the Tax band and then subtract the appropriate third column value from the result.

 

·         The total amount of tax due up to and including the current pay period

 

Projected Annual Tax due divided by Number of Pay Periods in the Year multiplied by Current Pay Period Number.

 

·         The amount of tax to be deducted in the current period.

 

Total Amount of Tax Due up to and including Current Pay Period minus Total Tax deducted up to end of Previous Period.

 

 

Please note that should the ‘Amount of Tax Liability for Current Period’ results in a negative figure, then tax deducted from the current pay period must be set to Zero.

 

More details on how tax is calculated can be obtained from here.

 

Tax Workout Summary

 

The Tax workout summary comprises of the following:

 

Total emoluments – This field shows the total amount of all periodic emoluments keyed in plus the total amount of all Cash category 1 car allowance amounts.

 

Non Cash FBV – This field shows the total amount of all ‘Category 1 Car FBV’ emoluments keyed in, plus all ‘Category 2 Assets’ emoluments keyed in plus all ‘Category 3 Other’ emoluments keyed in.

 

Tax deductions – The Tax deductions shows the amount of tax due for the end of the year.