Tax Computation Advanced Percent
Posted: Thu Dec 31, 2020 1:35 pm
Hi, I'm not sure why the wrong tax bracket is being applied to the computation, and I'm kind stumped.
I have 5 brackets that are computed for tax and is set up as follows the Gross income is the include pay Stub Account for all the brackets:
[Name] = Income Tax 2020 bracket 2
[Calculation] = Adv Percent (Tax Bracket Alt.)
[Percent] = 20
[Annual Amount Greater Than] = 250000
[Annual Amount Less Than] = 400000
[Annual Deduction Amount] = 250000
[Annual Fixed Amount] = 0
[Name] = Income Tax 2020 bracket 3
[Calculation] = Adv Percent (Tax Bracket Alt.)
[Percent] = 25
[Annual Amount Greater Than] = 400000
[Annual Amount Less Than] = 800000
[Annual Deduction Amount] = 400000
[Annual Fixed Amount] = 30000
[Name] = Income Tax 2020 bracket 4
[Calculation] = Adv Percent (Tax Bracket Alt.)
[Percent] = 30
[Annual Amount Greater Than] = 800000
[Annual Amount Less Than] = 2000000
[Annual Deduction Amount] = 800000
[Annual Fixed Amount] = 130000
.....
The others are not relevant for the example.
the tax table is: I computed for a semi-monthly payroll with the Gross income being 45000
But the income tax is 4166.67.
the desired income tax should be
45000 * 24 = 1080000 therefore Bracket 4
(1080000 - 800000)*0.3 + 130000 = 214000
214000/24 = 8916.67
But the Bracket it chose is bracket 3 i verified this by changing a value in bracket 3 and it affected the output but changing anything in bracket 4 did not affect the output
I tried to formulate as to where the 4166.67 came from I think it came from Time trex calculating it by :
45000 * 12 (months in yr) = 540000 therefore bracket 3
(540000 - 400000)*0.25 / 12 = 2916.67
30000 / 24 = 1250
2916.67 + 1250 = 4166.67
I'm not sure if I did something wrong in the setup of Time trex.
I have 5 brackets that are computed for tax and is set up as follows the Gross income is the include pay Stub Account for all the brackets:
[Name] = Income Tax 2020 bracket 2
[Calculation] = Adv Percent (Tax Bracket Alt.)
[Percent] = 20
[Annual Amount Greater Than] = 250000
[Annual Amount Less Than] = 400000
[Annual Deduction Amount] = 250000
[Annual Fixed Amount] = 0
[Name] = Income Tax 2020 bracket 3
[Calculation] = Adv Percent (Tax Bracket Alt.)
[Percent] = 25
[Annual Amount Greater Than] = 400000
[Annual Amount Less Than] = 800000
[Annual Deduction Amount] = 400000
[Annual Fixed Amount] = 30000
[Name] = Income Tax 2020 bracket 4
[Calculation] = Adv Percent (Tax Bracket Alt.)
[Percent] = 30
[Annual Amount Greater Than] = 800000
[Annual Amount Less Than] = 2000000
[Annual Deduction Amount] = 800000
[Annual Fixed Amount] = 130000
.....
The others are not relevant for the example.
the tax table is: I computed for a semi-monthly payroll with the Gross income being 45000
But the income tax is 4166.67.
the desired income tax should be
45000 * 24 = 1080000 therefore Bracket 4
(1080000 - 800000)*0.3 + 130000 = 214000
214000/24 = 8916.67
But the Bracket it chose is bracket 3 i verified this by changing a value in bracket 3 and it affected the output but changing anything in bracket 4 did not affect the output
I tried to formulate as to where the 4166.67 came from I think it came from Time trex calculating it by :
45000 * 12 (months in yr) = 540000 therefore bracket 3
(540000 - 400000)*0.25 / 12 = 2916.67
30000 / 24 = 1250
2916.67 + 1250 = 4166.67
I'm not sure if I did something wrong in the setup of Time trex.