Income Tax (FBR)
Aiden withholds salaried income tax using FBR slabs stored as versioned data per tax year, so payroll always applies the rates that were in force for the period being run — and a Finance Act change is a data update, not a software release.
What it does
- Versioned tax years, slab sets and slabs
- Automatic withholding during every payroll run
- Tax projection across the fiscal year
- Employee tax profiles and exemptions
Slabs are data, not code
Every year the Finance Act adjusts salaried tax slabs, and every year businesses on rigid software wait for a vendor patch. Aiden models tax as a versioned structure: a tax year holds a slab set, and a slab set holds the bands with their fixed amounts and rates.
You add the new version when the budget lands. Payroll reads the version in force for the month it is calculating, which means last year’s payslips stay exactly as they were computed, and a correction run for an old period uses the old rates correctly.
Withheld in the run, projected across the year
Tax is computed during payroll on annualised taxable salary and withheld monthly, rather than being estimated separately and reconciled later. Employees can see the projection for the year, and HR can see where a mid-year increment or bonus moves someone into a higher band before it happens.
Exemptions and profiles where they belong
Tax profiles carry per-employee treatment — exemptions, prior-employment income, adjustments — attached to the person rather than hidden in a spreadsheet, so a payroll run in six months applies them without anyone remembering to.
Why versioning matters more than the rate itself
Any system can multiply a salary by a percentage. The difficulty is that a payroll correction run in October for a June period must use June's rates, and a system that stores only the current slabs silently gets that wrong.
Aiden resolves the slab set by the period being calculated, not by today's date. That single decision is what makes historical corrections, mid-year joiners with prior-employment income, and audits after a budget change all behave predictably.
A Finance Act change, handled in an afternoon
- 1The budget adjusts salaried slabs effective 1 July.
- 2You create the new tax year and slab set in Aiden and enter the bands as published.
- 3July payroll automatically resolves to the new version — no software update, no vendor ticket.
- 4A correction run for a June period still resolves to the old version and computes exactly as it did originally.
What it connects to
- Payroll — tax is withheld inside the run
- EOBI & Social Security — the other statutory deductions in the same pass
- Reports & Compliance Hub — produces the statutory registers
Questions about income tax (fbr)
How does Aiden handle FBR tax slab changes?
Tax years, slab sets and slabs are versioned data you control. When the Finance Act changes rates you add a new version — historical payroll stays exactly as it was computed, and no software release is required.