Compliance & Configurable Thresholds

HRMS is built so that anything a Finance Act or regulator can change is a configuration value, never hard-coded in the software. This page explains how that works and what you, as a compliance admin, manage each year.

Regulatory thresholds

A threshold is a single value tied to a law — a VAT rate, a TDS rate, a tax relief cap, a gratuity factor, a notice-period day count. Each lives in the threshold store keyed by regulatory reference + key + fiscal year, so a payroll run always resolves the value that was in force for its year.

PROPOSED → ENACTED

Thresholds have a lifecycle:

• PROPOSED — staged but inert. Calculations ignore it; the engine uses its documented safe fallback (e.g. exit-TDS 0, gratuity 0).
• ENACTED — live. The value is used in calculations from then on.

New features ship PROPOSED

Gratuity accrual, exit-payment TDS, the statutory notice period, and overtime premium factors are seeded PROPOSED. They do nothing until your compliance admin enacts them for the fiscal year — a deliberate, one-step action once you've confirmed the legal value. This is why a freshly-deployed F&F shows gratuity/TDS as 0 with a note.

The annual cycle (Jeth / Finance Act season)

Each year when the Finance Act passes:

1. Review the proposed values for the new fiscal year.
2. Correct any that changed.
3. Enact them.

Stale references (not reviewed for the current year) are flagged on the compliance dashboard.

Regulatory traceability

Every calculation that the law dictates carries a citation to the exact reference it implements (Income Tax Act 2058, Labour Act 2074, SSF Act 2074, VAT Act 2052, …). This is how the system proves why it computed what it did, and what to re-check when a law changes.

What you manage here

Area	Examples
Tax	Bracket sets (married/unmarried), reliefs (life/health insurance, retirement), female rebate, surcharge
Social security	SSF / EPF / CIT rates and caps
Labour	Minimum wage, festival bonus, gratuity factors, notice period, overtime premiums
Records	Document retention periods

Statutory registration register

HR → Statutory Registers (/hr/statutory-registers) records each employee's enrolment numbers with the statutory bodies — SSF, EPF (Sanchaya Kosh), CIT, and IRD PAN (the Nepal authorities are pre-seeded). One entry per employee per authority: registration number, date, and status (registered / pending / rejected / inactive). This is the register a labour inspector asks for — searchable by employee, employee number, or registration number, and exportable from the list.

Statutory reporting

The filing exports (SSF/CIT/EPF/TDS CSVs and the annual TDS certificate register) are produced from payroll — see Payroll & Tax.

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