Level of Calculation (75/LC)

You use level of calculation codes to define how you want the system to calculate tax amounts. The level of calculation determines whether you want level breaks (which determine the tax rates for specified income levels), limits, and adjustment amounts to apply to weekly, monthly, or annual earnings.

The Description 2 field is used as a divisor to determine the number of periods in a year. The number in the Special Handling field is used to convert annual salary to the pay-period salary.