Purpose

This FAQ explains the possible reasons why Professional Tax (PT) is not calculating for an employee and provides a systematic checklist to identify and resolve the issue.

FAQ 1: Why is Professional Tax (PT) not calculating for an employee?

If PT is not calculating in payroll, validate the following steps in sequence:

Step 1: Verify PT Gross Calculation in Payroll Summary

1. Open Employee Payroll Summary.
   

2. From the dropdown, select Professional Tax Amount.
   

3. Review the PT Gross Details:

   • Confirm which salary headers are considered for PT gross.

   • Ensure the Total PT Gross Amount is correct.

4. Check the Comments / Remarks section:

   • The system displays explanatory messages if PT is not deducted (for example, below slab limit, PT not applicable, configuration issues).
     

Step 2: Validate Employee Working Location

1. Check whether the working location is correctly mapped to the employee.

2. PT is calculated strictly based on the location mapped to the employee.

Step 3: Check PT Applicability in Statutory Information

1. Navigate to Employee Statutory Information.

2. Verify the  PT applicability.
   

Step 4: Verify PT Header Mapping in Salary Structure

1. Open the Employee Salary Structure.

2. Confirm that the Professional Tax (PT) deduction header is mapped correctly.
   

Step 5: Check State wise information in the under complience Statutory Information

1. In Compliance Statutory Information, check the state wise slab and applicablity
   

Step 6: Review Contract-Level Salary Overrides

1. Check if any Contract-Level Salary Override has been applied.

2. Overrides may alter PT-applicable gross or deduction behavior.

Step 7: Verify Statutory Location at Contract Level (HR Options)

1. Open the Contract → HR Options section.

2. Check whether a Statutory Location is mapped at the contract level.

3. If a statutory location is mapped:

   • PT will be calculated based on the contract-level location,

   • Not the employee’s default location.

Summary Checklist

If all the above checks are correctly configured and PT is still not calculating, it is recommended to review PT slab configuration and effective dates at the system level.