Calculating Deductions

Topics brought up by the TimeTrex open source community.
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angelines
Posts: 17
Joined: Tue Jan 24, 2012 7:56 am

Calculating Deductions

Post by angelines »

Hi,

I need to know how to calculate the deductions on timetrex v7.

I need to calculate 30% tax on the gross salary after deducting 600,000 annually which will be $11,538 weekly, $23,077 fortnightly and $50,000 monthly.

Also, for each employee working more than $50,000 monthly I need to calculate 5.6% of the total gross for employee and 8.4% of the total gross for employer. If the employee earns $50,000 or less the percentages are 5.2% and 7.8% respectively.

Can you please give me an idea on how to set the rules.

Thanks.
shanec
Posts: 417
Joined: Thu Apr 25, 2013 8:22 am

Re: Calculating Deductions

Post by shanec »

Here are the Tax / Deductions that should fulfill your needs:

NAME = 30% Tax on Employee Gross
TYPE = Tax
CALCULATION = ADVANCED PERCENT:
PERCENTAGE = 30%
ANNUAL WAGE BASE/MAXIMUM EARNINGS = 0
ANNUAL DEDUCTION AMOUNT = $600,000
PAY STUB ACCOUNT: (pay stub account name)

NAME = 5.6% Tax on Gross for Employee
TYPE=Tax
CALCULATION = ADVANCED PERCENT (RANGE BRACKET)
PERCENTAGE = 5.6%
ANNUAL DEDUCTION AMOUNT = 0
ANNUAL AMOUNT GREATER THAN = $600,001
ANNUAL AMOUNT LESS THAN = 0
ANNUAL FIXED AMOUNT = 0
PAY STUB ACCOUNT: (pay stub account for employee)

NAME = 8.4% Tax on Gross for Employer
TYPE=Tax
CALCULATION = ADVANCED PERCENT (RANGE BRACKET)
PERCENTAGE = 8.4%
ANNUAL DEDUCTION AMOUNT = 0
ANNUAL AMOUNT GREATER THAN = $600,001
ANNUAL AMOUNT LESS THAN = 0
ANNUAL FIXED AMOUNT = 0
PAY STUB ACCOUNT: (pay stub account for employer)

NAME = 5.2% Tax on Gross for Employee
TYPE=Tax
CALCULATION = ADVANCED PERCENT (RANGE BRACKET)
PERCENTAGE = 5.2%
ANNUAL DEDUCTION AMOUNT = 0
ANNUAL AMOUNT GREATER THAN = 0
ANNUAL AMOUNT LESS THAN = $600,000
ANNUAL FIXED AMOUNT = 0
PAY STUB ACCOUNT: (pay stub account for employee)

NAME = 7.8% Tax on Gross for Employer
TYPE=Tax
CALCULATION = ADVANCED PERCENT (RANGE BRACKET)
PERCENTAGE = 7.8%
ANNUAL DEDUCTION AMOUNT = 0
ANNUAL AMOUNT GREATER THAN = 0
ANNUAL AMOUNT LESS THAN = $600,000
ANNUAL FIXED AMOUNT = 0
PAY STUB ACCOUNT: (pay stub account for employer)

It is also critical that you check INCLUDE, EXCLUDE and PAY STUB ACCOUNTS to make sure that the correct tax calculations are made.
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