Are you looking to add Zakat tax relief during your payroll cycle in BrioHR? Follow this simple step-by-step guide to ensure accurate Zakat deductions for your employees.
What is Zakat Tax Relief?
Zakat is an Islamic form of charitable giving, and in some countries, it's deductible from an employee's payroll. BrioHR allows businesses to facilitate this deduction easily during payroll processing and has option to set the deduction as recurring on monthly basis.
Step-by-Step Process to Add Zakat in Payroll
1. Access the Payroll Dashboard
Log in to BrioHR. Navigate to the HR Lounge, then click on Payroll. Select the Run Payroll button to begin the payroll cycle.
2. Choose the Payroll Cycle
After selecting the cycle you wish to run, you'll be taken to Stage 1 - Adjust Payroll. This is where you can update employee pay information.
3. Select an Employee for Zakat Deduction
Choose the employee for whom you wish to apply the Zakat deduction, then expand the row.
4. Search for Zakat
Click the Tax Relief button, and search for Zakat.
5. Choose a Deduction Option
- Zakat (Deducted From Payroll): If the company will handle the Zakat payment, the amount will be deducted from the employee's salary.
- Zakat (Paid Directly by Employee): Choose this option if the employee pays the Zakat directly without direct deduction from payroll, and would like to declare in monthly payroll for PCB reduction.
6. Enter the Amount
Once the deduction option is selected, enter the amount of Zakat. You can click 'Continue' to proceed to Stage 2.
7. Set Up Recurring Zakat Deductions
If the Zakat deduction needs to recur, click on Set Recurring Tax Relief.
- Check the box for Zakat.
- If applicable, check Set Recurring Limit and enter the number of times the Zakat deduction should recur.
8. Save Your Changes
Click the Save Recurring button to save your settings.
Setting the zakat pay item as recurring ensures the pay item appears again in the next payroll month.
If you don't set a 'recurring limit', the pay item will appear until you decide to disable the recurring and delete the pay item.
NOTE:
To add zakat pay item in bulk you can refer here: Import Pay Items in Bulk: A Step-by-Step Guide
How to Create a Zakat Deduction List Report in Payroll
Frequently Asked Questions
Can Zakat be set as a recurring deduction?
Yes, you can easily set Zakat as a recurring deduction using the Set Recurring Tax Relief option.
How does Zakat deducted from payroll work?
When Zakat is deducted from payroll, the company is responsible for processing the payment to zakat organization on behalf of the employee.
Need Assistance?
If you have any questions or require assistance, please reach out to our support team via live chat or email us at support@briohr.com.