Introduction

In uKnowva HRMS, you can manage and customize salary structures based on your organization’s tax and payroll policies.

One such important feature is the ability to mark specific entitlements as tax-free.

This is especially useful when you need to make allowances or earnings exempt from taxation either for all employees or for selected individuals.

Whether you're updating the master salary structure or modifying it for a single user, uKnowva HRMS offers a simple interface to make these changes efficiently.

This article will guide you through both scenarios to ensure accurate tax handling for employee entitlements.

Step 1: Navigate to the Salary Structure Settings

To make an entitlement tax-free for all users under a particular structure, begin by going to the left-hand navigation panel.

Click on the HR Manager menu and then select the Payroll menu, and select the Salary Structure sub-menu.

This section allows you to access and configure existing salary structures within the system.

Step 2: Edit the Master Salary Structure

Once you are on the Salary Structure page, locate the desired structure from the list provided.

If the list is long, use the search bar above to quickly find it.

After locating the correct structure, click on the pen icon under the Action column to edit it.

Inside the structure, scroll to the Earnings section. Here, you will see a column labeled "Is Non Taxable?".

By default, this option is set to No. Change it to Yes for the entitlement you wish to mark as tax-free.

After making the necessary updates, click the Save button to finalize the changes. These updates will now reflect across all employees assigned to this structure.

Step 3: Make an Entitlement Tax Free for a Specific User

If your requirement is to apply the tax-free status only for an individual employee, go to the HR menu from the left-hand side navigation panel.

From there, select the Payroll sub-menu, and again click on the Payroll option within that section. This view displays a list of all employees’ payroll entries.

Find the specific user for whom you wish to make the entitlement tax-free.

Click on the pen icon under the Action column for that employee.

This will open up their individual payroll configuration.

Just like before, scroll to the Earnings section and find the "Is Non Taxable" column. Change it from No to Yes according to your requirement.

After this, click on the Save button to apply the change for that user.

Conclusion

That’s it!

You’ve now successfully marked an entitlement as tax-free in uKnowva HRMS.

By following this process, you ensure accurate payroll calculations and tax deductions for your employees, whether across the entire organization or for a specific individual.

This functionality adds flexibility and precision to your compensation management process.

If you have any questions or need additional support, feel free to contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..