Why the "-ve" is shown in the tax form?
Sometimes, you will see "-ve" after generating the tax form. Then you will find you cannot print the form or generate the xml file as any negative amount is not acceptable by IRD. The negative amount may be caused by e.g. NPL is counted in the Leave Pay tax category, staff have taken advance annual leave.
***Payment in lieu of notice by employee is not taxable.
(From IRD https://www.ird.gov.hk/eng/faq/cer.htm "Payment in lieu of notice" question 31)
Ways to solve the "-ve"
If it is possible to have a negative amount at this pay type, you need to merge it into other tax categories such as Salary. (You can assign the pay types to different tax categories)
1. By system
- Find out where is the negative amount comes from, i.e the pay type
- Go to Payroll->Job Order Template
- Check the tax category of that pay type, if it is possible to have a negative amount, change the tax category to "Salary".
- Recalculate the IR56F/IR56B and you see the amount being merged
- You can now print the tax form/ generate the xml file again
2. Manual Adjust
- Open the tax form
- Calculate the amount and merge it to Salary
- Delete the negative amount
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