Rate Code (75/RC)

You use rate codes to identify earnings in different tax categories. Examples of rate codes include M for earnings that are received in a main job and S for earnings that are received in a secondary job.

The Description 2 field contains the name of a data item. The Special Handling field contains a value that might be entered in the data item that is entered in the Description 02 field. When the system calculates tax information for an employee, if this data item contains the value that is stored in the Special Handling field, the tax is to be calculated for the employee.

For example, you might want to set up a rate code that the system calculates only for employees whose work state is New South Wales. You might enter a rate code of 82 (for New South Wales) in UDC 75/RC. In the Description 02 field, you would enter WSKE (the data item for work state), and in the Special Handling field, you would enter NSW. In this example, the system would calculate the taxes that are associated with this rate code only for employees who have NSW in the Enter the State You Work In field on the Australian Tax Overrides form.