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Friday March 31, 2023 was a momentous day of Ghana’s legislative history. Parliament passed a new law called the Income Tax (Amendment) (No. 2) Bill, 2022. This law affects how companies calculate payroll taxes and demands that accountants, HR professionals  and payroll administrators review their operations to ensure compliance with the law. 

 The bill brings significant changes to existing legislation on PAYE graduating schedules. This may require manual computation adjustments for companies that use spreadsheets or other traditional forms of payroll. It is essential for them to understand the new law and find ways to update their formulae and codes so as not to default with the regulatory requirements. 

For companies that already utilize automated software systems like achievePayroll – an innovative solution provider in Ghana- there is no need to panic, as all computations are automated within seconds of regulatory amendments. AchievePayroll seamlessly integrates any necessary updates into their technology platform ensuring user compliance at all times! 

Despite the challenges this law may pose for smaller businesses, there is one very progressive change contained therein – employees who make voluntary pension contributions can save a portion of their earnings into registered pension schemes tax-free! This development benefits employees across various levels and scales of income brackets. 

AchievePayroll offers a robust yet fully functional software system that understands the complexities that apply with managing an organisation’s payroll data effectively, amidst constantly changing regulations. With years of experience in providing state-of-the-art technical support services, our team remains up to date with any regulatory updates that ensure users total compliance with ease! 

So now let us explore some key implications of this bill: 

Upgraded Computation 

This amendment will undoubtedly have an impact on business for organizations that rely on spreadsheets or manual computations for their payroll needs. These businesses will have to update their spreadsheets and formulae regularly to ensure that all computations are in line with regulations as and when they are passed. 

Automated Calculations 

As mentioned earlier, software systems such as achievePayroll are designed to be robust but functional platforms capable of automatically modifying the software to reflect changes in regulatory requirements within seconds of implementation. This is done smoothly with little effort required from users and ensures that companies do not suffer any penalties resulting from failure in compliance. 

Voluntary Pension Contributions 

This bill brings with it some elements of progressiveness – voluntary pension contributions under the National Pensions Act continue to provide workers tax relief and this may be the best time for employers to encourage their workers to take advantage of the law. Employees, (regardless of income bracket) must save towards their retirement and employers must support their workers by making provisions in salary agreements on payroll accordingly. 

Given these revelations, why should organizations opt for a solution like achievePayroll? 

The value proposition offered by achievePayroll far outweighs the cost savings derived through the use of manual computations or other software solutions out there! The following reasons come into play: 

Regulatory Compliance –The dynamic nature of payroll software requires frequent updates; and thanks to our exceptional technical team that constantly monitors the change in regulations, we ensure that all our clients (SMEs included) enjoy total compliance with ease without external factors that cause unnecessary stress. 

Increased Efficiency – AchievePayroll has provided years of support and direction that drive efficiency in upgrades. This means HR departments can focus on more valuable tasks, leading to better productivity and long-term profit margins. 

Cost Savings – Our software is free to use, hence negligible expenses except during incidents necessitating our premium subscription options. By choosing achievePayroll, organizations can save costs and increase profitability. It is a choice that has significant implications for growth, especially in this era of digital innovation ushered in by the Income Tax (Amendment) Bill 2022. 

In conclusion, the Income Tax (Amendment) Bill 2022 provides a valuable opportunity for employees to save a portion of their earnings into registered pension schemes tax-free and gives employers the chance to support their employees in this regard. Additionally, organizations can benefit from automated calculations the software solution provides, as they are designed to seamlessly integrate any necessary regulatory updates always ensuring user compliance, while also providing increased efficiency, cost savings and regulatory compliance. In this way, the bill serves as a progressive and forward-thinking legislative development, providing organizations with the opportunity to thrive in the digital age.