Example of Withholding Calculations for Contractor Services

These tables show the setup for the withholding, and the records for the F0411 table and Contractor Services Withholding - Payments Done table (F76A430) when you process vouchers for payment.

Withholding concept setup:

Concept	Description	Percentage	Threshold Amount (Minimum)
ENG	Engineering	1.2	400,000
ARC	Architecture	2.5	400,000

F0411 table records:

Voucher	Supplier	Concept	Taxable Amount	Withholding	Comment
#1	122	ARC	100,000	0	No withholding because the minimum is not met.
#2	490	ENG	500,000	6,000	500, 000 ×1.2% = 6,000
#3	122	ARC	350,000	11,250	450,000 × 2.5% = 11,250 Total of voucher #3 and the accumulated amount from voucher #1 exceeds the minimum, so withholding is calculated.
#4	122	ARC	10,000	250	460,000 × 2.5% = 11,500 − 11,250 = 250 Voucher #4 is added to the accumulated amount, withholding is calculated on the total, then the amount already withheld is subtracted to get new deduction amount.

F76A430 table records:

Supplier	Concept	Year	Taxable	Withholding
122	ENG	2010	460,000	6,000
490	ARC	2010	500,000	12,500