Yearly Payroll Tax Report
The Yearly Payroll Tax Report is the tax due by a business annually based upon their business classification as either a Class 1 or Class 2 business. Business classification is described in the Employee Remuneration section of the VIHRMS knowledge base. It is described again here:
"Class 1 businesses are classified by the following three criteria: I) An annual payroll not exceeding $150,000.00 per financial year, ii) An annual turnover that does not exceed $300,000.00 and iii) A quantity of employees and deemed employees that does not exceed 7 total persons.
If your business falls within the parameters of any of these three classification it is classified as a Class 1 business and the ViHRM system will calculate your tax to be paid according to the Class 1 business tax bracket. If your business exceeds any of the criteria listed for the class 1 business, it is then classified as a Class two business and the ViHRM System will calculate the tax to be paid by your business according to the Class 2 business tax bracket.
For example, if a business employs 8 persons but has an annual payroll that does not exceed $150,000.00 per financial year, the business is considered a class 2 business and taxed in the class two business bracket. If also, a business has 6 employees and has an annual turnover of $400,000.00, the business is also classified as a class 2 business because the annual turnover exceeds the maximum Class 1 classification, (although the number of employees has not exceeded it's maximum.)
Using the ViHRM system the yearly Payroll tax to be paid by your business is automatically calculated when the Payroll tax form is generated by the company administration. Ensure that your business classification is correct within the system for correct calculation of tax. Your business classification is set up in the tab for establishing the Social Security, NHI and Tax Numbers section, under the Payroll Management tab."
To generate the Yearly Payroll Tax report, select the 'Yearly Payroll Tax tab' under the 'Reports' section of the Payroll management Category, as shown in the upper right corner of the image below as Payroll Management > Reports > Yearly Payroll Report.
After clicking on Yearly Payroll Report, the above page will appear showing a 'Select Year' drop box from which a year must be chosen. Chose the year needed for which tax is being submitted, and click on the blue "Go" button. The completed Payroll Tax Form for the chosen year will be generated headed, "Government of the Virgin Islands - Annual Return of Payroll Tax". It will include all of the calculated and required data in a printable form.
This completed form is the form to be printed and physically submitted to the Inland Revenue Department by the date of the year stipulated by the Department. Print and submit this completed form to fulfill this yearly requirement.
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On this sheet, you are required to select the year that you would like to view payroll report.
This sheet shows the details of the company and the return of year.
This shows the Yearly Gross Salary till date.
The above sheets show a more detailed Return of Remuneration and Payroll Tax Payable for the year ended 31st December of 2018 for all the employees.
If each employee is earning more than $10,000 then the Payroll Tax Payable will show at column 8.