Setting Up Tax Calculation Parameters

Access the Australian/New Zealand Tax Parameter Revisions form.

Limit 1/9

Enter a monetary limit that defines how the employee's taxes are calculated. All of the pay that an employee receives that is at or below the Limit 1/9 amount is taxed using the rate in the Rate 1/9 field. This amount is defined by the governmental taxing authority.

Note: If a value of Z is in the Tax scale field, this field denotes the value for limit 9. For example, if tax scale B has 12 limits, you enter tax parameters for limits 1 through 8 for tax scale B, and enter limits for tax parameters 9 through 12 for tax scale ZB.

Rate 1/9

Enter the rate that is used to calculate taxes for all monetary amounts that are at or below the amount in the Limit 1 field. This amount is defined by the governmental taxing authority.

Note: If a value of Z is in the Tax scale field, this field denotes the value for rate 9. For example, if tax scale B has 12 rates, you enter tax parameters for rates 1 through 8 for tax scale B, and enter rates for tax parameters 9 through 12 for tax scale ZB.

Adjustment 1/9

Enter the amount that is subtracted from the tax that is calculated for level 1 for this tax scale. The adjustment is made only if the employee's pay reaches the Limit 1 amount. This amount is defined by the governmental taxing authority.

For example, if the Limit 1 amount is 500.00, the rate 1 is 10 percent, and the adjustment 1 amount is 10.00, no adjustment is taken if the employee's pay is less than 500.00. If the employee receives 500.00 or more, the adjustment is taken. For an employee that makes exactly 500.00, the tax calculation is: (500 × .10) = 40.

Note: If a value of Z is in the Tax scale field, this field denotes the value for adjustment 9. For example, if tax scale B has 12 adjustments, you enter tax parameters for adjustment 1 through 8 for tax scale B, and enter adjustments for tax parameters 9 through 12 for tax scale ZB.