Income Tax Rates and Amounts

To set up and maintain the parameters for calculating income tax withholding using the template provided by PeopleSoft, you must:

Update the IRRF table when changes to deductible tax rates and installments occur.

PeopleSoft delivers the IRRF table as a bracket (IR BR PCT IRRF). As the graduated tax table might vary during the year, you must maintain this bracket and retain the previous versions. The brackets are effective-dated. Calculations use the bracket in effect as of the payroll payment date.

Update the following variables containing values for income tax calculation when changes occur:

Variable	Description
FP VR DESC SIMPLIF	Amount of simplified monthly deduction, which is used to calculate income tax if this amount is higher than or equal to the corresponding accumulator (IR DEDUCOES, IR DEDUCOES 13S, or IR DEDUCOES FER) value.
FP VR IND DESC SIM	Indicates whether the simplified deduction amount was used in the income tax calculation for the employee. If the simplified deduction amount was used, the variable FP VR IND DESC SIM = Y appears in the payroll results for the employee on the Results by Calendar Group - Supporting Elements page.
IR VR MIN IR	Minimum amount of income tax withholding.
IR VR VRDED DEP	Amount of the deduction per dependent.
IR VR VRDED APO	Retirement deduction amount.

Ensure the elements composing the deductions for the income tax calculation are defined as members of the respective accumulator.

The following table lists the accumulators for each type of income tax calculation:

Ensure the elements composing the gross income for the income tax calculation are defined as members of the respective accumulator.

These accumulators can include earnings and deductions such as Unjustified Absence.

The following table lists the accumulators for each type of income tax calculation: