I recently installed the 1.5 beta version and tried the "Advanced Percent (Tax Bracket)" option. the results were really good, but not exactly what I calculated, there is a 5% deviation. This could be because the tax brackets I use are monthly, and I have to multiply them by 12, this gives a certain margin of error. TimeTrex uses "Annual Wage Base/Exempt Amount".
TimeTrex allows employees to have "Hourly" and "Salary (Annual)" wages, in Latin American countries taxes and deductions are calculated on a monthly salary. Is it possible that you will add this feature in the next release? Comments? Suggestions?
Monthly Wage
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- Posts: 36
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- Location: San Jose, Costa Rica
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- Posts: 36
- Joined: Fri Jan 05, 2007 5:26 pm
- Location: San Jose, Costa Rica
- Contact:
Some background for this topic is: http://forums.timetrex.com/viewtopic.php?t=132
I was using TimeTrex "Advanced Percent" to calculate Tax Tiers but it did not work correctly. With the new 1.5 beta version "Advanced Percent (Tax Brackets)" they seem to work a lot better. Some of the numbers I'm using are the following:
An employee works 80 hours in a 15 day period with an hourly salary of $17.10 this gives a salary of $1,368 for this pay period. The Tax Tiers in Costa Rica (Yearly) are as follows:
Under $10,896 : No Tax
$10,896 - $16,344 : 10% Tax
Above $16,356 : 15% Tax
In Costa Rica the income tax is calculated on a monthly basis, that means those values would be:
Under $908 : No Tax
$908 - $1,362 : 10% Tax
Above $1,363 : 15% Tax
Those taxes are cumulative, this means that for our employee he has to pay taxes equivalent to each tax bracket because his monthly salary is in the 15% Tax bracket.
If you calculate his taxes with the yearly table it would be:
Yearly Salary: $1,368 * 2 = $2,736 (Monthly Salary) * 12 = $32,832
For his first $10,896 in earnings he doesn't pay taxes
For the 10% bracket he would pay all the taxes: $16,344 - $10,896 = $5,448 / 12 = $454 (Monthly) / 2 = $227 (15 Day period), from this we get the 10% = $22.7 in taxes
For the 15% bracket he would pay taxes for his earnings above $16,356: $32,832 - $16,356 = $16,476 / 12 = $1,373 (Monthly) / 2 = $686.5 (15 Day period), from this we get the 15% = $102.97 in taxes
The TimeTrex Pay Stub Summary, when you View Pay Stubs in PDF TimeTrex gives the following values for the income tax:
10% = $20.95
15% = $110.84
They are different from my calculations. I calculated the taxes with the yearly table and monthly, they give me the same results, which don't match TimeTrex. What do you recommend with those calculations?
PS. I think it would be usefull if the Monthly Salary option was added so that countries that base their salaries on a monthly basis can use that.
I was using TimeTrex "Advanced Percent" to calculate Tax Tiers but it did not work correctly. With the new 1.5 beta version "Advanced Percent (Tax Brackets)" they seem to work a lot better. Some of the numbers I'm using are the following:
An employee works 80 hours in a 15 day period with an hourly salary of $17.10 this gives a salary of $1,368 for this pay period. The Tax Tiers in Costa Rica (Yearly) are as follows:
Under $10,896 : No Tax
$10,896 - $16,344 : 10% Tax
Above $16,356 : 15% Tax
In Costa Rica the income tax is calculated on a monthly basis, that means those values would be:
Under $908 : No Tax
$908 - $1,362 : 10% Tax
Above $1,363 : 15% Tax
Those taxes are cumulative, this means that for our employee he has to pay taxes equivalent to each tax bracket because his monthly salary is in the 15% Tax bracket.
If you calculate his taxes with the yearly table it would be:
Yearly Salary: $1,368 * 2 = $2,736 (Monthly Salary) * 12 = $32,832
For his first $10,896 in earnings he doesn't pay taxes
For the 10% bracket he would pay all the taxes: $16,344 - $10,896 = $5,448 / 12 = $454 (Monthly) / 2 = $227 (15 Day period), from this we get the 10% = $22.7 in taxes
For the 15% bracket he would pay taxes for his earnings above $16,356: $32,832 - $16,356 = $16,476 / 12 = $1,373 (Monthly) / 2 = $686.5 (15 Day period), from this we get the 15% = $102.97 in taxes
The TimeTrex Pay Stub Summary, when you View Pay Stubs in PDF TimeTrex gives the following values for the income tax:
10% = $20.95
15% = $110.84
They are different from my calculations. I calculated the taxes with the yearly table and monthly, they give me the same results, which don't match TimeTrex. What do you recommend with those calculations?
PS. I think it would be usefull if the Monthly Salary option was added so that countries that base their salaries on a monthly basis can use that.
What pay period schedule are your employees on in TimeTrex, bi-weekly or semi-monthly?
If I use a bi-weekly pay period schedule (26 pay periods / year) this is how TimeTrex calculates the tax bracket:
wage base: 16344 / 26 = 628.615
exempt amount: 10896 / 26 = 419.076
628.615 - 419.076 = 209.538 * 10% = 20.95
If I use a semi-monthly pay period schedule (24 pay periods / year ) this is how TimeTrex calculates the tax bracket:
wage base: 16344 / 24 = 681
exempt amount: 10896 / 24 = 454
681 - 454 = 227 * 10% = 22.70
Do you have it set to a bi-weekly pay period schedule when you really want a semi-monthly pay period schedule?
If I use a bi-weekly pay period schedule (26 pay periods / year) this is how TimeTrex calculates the tax bracket:
wage base: 16344 / 26 = 628.615
exempt amount: 10896 / 26 = 419.076
628.615 - 419.076 = 209.538 * 10% = 20.95
If I use a semi-monthly pay period schedule (24 pay periods / year ) this is how TimeTrex calculates the tax bracket:
wage base: 16344 / 24 = 681
exempt amount: 10896 / 24 = 454
681 - 454 = 227 * 10% = 22.70
Do you have it set to a bi-weekly pay period schedule when you really want a semi-monthly pay period schedule?
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- Posts: 36
- Joined: Fri Jan 05, 2007 5:26 pm
- Location: San Jose, Costa Rica
- Contact:
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- Posts: 36
- Joined: Fri Jan 05, 2007 5:26 pm
- Location: San Jose, Costa Rica
- Contact: