Tax & contributions (payroll calculators)
Tax & contributions works out each employee's income tax and statutory contributions from the country they work in. It covers Pakistan, the United States, the United Kingdom, Australia, the UAE and Saudi Arabia. The figures are added to the normal payslip. Income tax replaces your Income tax slabs, statutory deductions are added as deduction lines, and the employer's share is shown as employer contributions. That share is a cost to the company and is never deducted from net pay.
Not tax advice. Rates come from the dated legal rules in Settings → Country & compliance. Each rule shows its source and whether it has been checked. Rules marked not verified come from secondary sources, so check them with your adviser before relying on them. You can override any figure for your company there.
Before you start
- Settings → Country & compliance: choose your company's country. Then set the country and state, province or emirate of each office (work location). An employee can also have their own work country on their profile. That is how the calculator knows which country's rules to use.
- Settings → Payroll Settings → Tax & contributions: tick Calculate tax and contributions automatically, then fill the settings for your countries (see below).
- Payroll → Employee Salary → (employee) → Tax & contribution inputs: enter what each employee gave you, such as a W-4, a tax code and NI letter, or a TFN declaration.
- Generate payroll as usual. Run payroll Checks list employees with missing inputs, employees with no work country, and salary-group deductions that would charge the same tax twice.
Tax & contributions needs Country & compliance in your plan. Employees in other countries keep the Income tax slabs.
What each country calculates
| Country | Employee deductions | Employer contributions | Inputs per employee |
|---|---|---|---|
| Pakistan | FBR salary income tax: the annual tax is projected from pay to date plus this month's pay times the remaining months, minus tax already deducted, and spread over the remaining months of the July–June year. EOBI 1% of the minimum wage. | EOBI 5% (when the company is covered, by default from 5 employees). PESSI, SESSI, KPESSI or BESSI 6% by province, up to the wage ceiling you set. | Pay and tax from a previous employer this year; EOBI or social security exemptions |
| United States | Federal income tax by the IRS Pub 15-T percentage method (2026 tables). Social Security 6.2% up to the wage base. Medicare 1.45%, plus 0.9% above $200,000 for the year. State income tax for CA, NY, PA, IL, MA, NJ and GA (none for TX, FL, WA). CA SDI, NY PFL/DBL, WA PFML/Cares and PA UC. | Social Security, Medicare, FUTA (0.6% of the first $7,000) and SUTA (your state rate up to the state wage base) | W-4: filing status, Step 2 checkbox, dependents (Step 3), Step 4(a)(b)(c), exempt; state allowances and extra withholding |
| United Kingdom | PAYE, cumulative by tax code (S = Scottish, C = Welsh; BR, D0, D1, NT, 0T, K codes, Week 1/Month 1). NI by category letter. Student loan plans 1, 2, 4, 5 and the postgraduate loan. Workplace pension on qualifying earnings. | Employer NI 15% (0% bands for M, H, V, Z, freeport and investment-zone letters). Employer pension. | Tax code, NI letter, loan plans, pension opt-in or opt-out, P45 pay and tax |
| Australia | PAYG withholding by ATO Schedule 1: scale 2 if the employee claims the tax-free threshold, scale 1 if not, scale 3 for foreign residents, 47% with no TFN, and working holiday rates. The Medicare levy is included. | Superannuation guarantee of 12% of ordinary time earnings (overtime excluded), up to the quarterly maximum contribution base | TFN declaration answers, residency, extra withholding, super fund |
| UAE | No income tax. GPSSA for UAE nationals (employee 11%) on basic pay plus housing, between the minimum and maximum salary. | GPSSA employer 12.5% (the 2.5% government share is shown separately). Abu Dhabi locations use ADPF. | UAE national (auto from nationality), scheme override |
| Saudi Arabia | No income tax. GOSI annuities and SANED for Saudis on basic pay plus housing, capped at SAR 45,000. Saudis first registered from 3 July 2024 have an annuity rate that rises every July. | GOSI annuities, SANED and occupational hazards for Saudis; hazards 2% only for non-Saudis | Saudi (auto from nationality), first GOSI registration date |
Nationality comes from the Nationality field on the employee's profile.
Settings by country
- Pakistan: EOBI coverage (Auto, Yes or No) and the employee count it starts from; provincial social security on or off and its wage ceiling; medical allowance up to 10% of basic pay is tax-free.
- United States: your SUTA rate per state; the FUTA rate (empty means 0.6%); names of pre-tax deductions (401(k)) and section 125 deductions, which reduce taxable wages.
- United Kingdom: the workplace pension (on or off, scheme name, qualifying earnings or all pay, employee and employer %, relief at source or net pay); the leave types paid as SSP and SMP (unpaid days of those leave types get statutory pay added as earnings); SSP qualifying days per week.
- Australia: earning names that are not ordinary time earnings (overtime).
- UAE / Saudi Arabia: earning names that count as housing for the pension or GOSI salary.
On the payslip
- Income tax shows as Income tax. It is stored like the old slab tax, so the Employee and Company income tax reports and the FBR export keep working.
- Other deductions show under their scheme name, for example EOBI (employee), Social Security, National Insurance or GOSI annuities (employee).
- Employer contributions are listed under the deductions with their rates. They are not deducted.
- Payroll admins also see How this was calculated. It lists each step with the rule used, the tax year, the source, the date the rule applies from, and whether it is verified or a company override, together with any checks (for example, a missing date of birth for pension).
Year-to-date figures (cumulative PAYE, the Social Security wage base, additional Medicare, FUTA/SUTA caps, the quarterly super cap and the FBR projection) come from the employee's earlier payslips in the same tax year. Payslips made before you switched the calculators on count only if income tax was deducted on them (Income tax slabs on). Otherwise enter the pay and tax to date in the employee's inputs (UK: P45 or earlier payroll; Pakistan: salary and tax to date), so switching on mid-year never back-charges a whole year of tax.
Contribution register
Payroll → Reports → Contribution register totals the employee and employer shares per scheme. Choose a whole year to see one column per scheme by month, or a single month to see one row per employee and scheme with its base. You can filter to Locked and paid only, and export to CSV. Only payslips calculated with Tax & contributions appear.
Good to know
- Switching the calculators on changes only payslips you generate from then on. Existing payslips are not touched.
- Remove salary-group deductions such as "Income Tax" or "EOBI" once the calculators handle them; the Run payroll checks warn you about them.
- Tables are dated. A payslip for a past period uses the rule valid then. When a new tax year's table is missing, the payslip check says so.
- Not calculated: US local and city taxes (NYC, Yonkers, PA local EIT), Australian STSL (add the Schedule 8 amount as extra withholding), the UK Employment Allowance, and NJ TDI/FLI and MA PFML (no rate on file).
REST API
GET/PUT /api/v1/payroll-tax/settings, GET/PUT /api/v1/payroll-tax/employees/{employee_id}/inputs, GET /api/v1/payroll-tax/register and GET /api/v1/payroll-tax/payslips/{id}. See the API docs, section Payroll Tax & Contributions (API key scope payroll).