Examples of Calculation Value Definitions
Use these deduction examples to understand calculation value definitions for Canada. The calculation value depends on where the employee falls in an earnings range.
The From and To values of the range can be static or dynamic. Dynamic values are a fraction of the value of a database item, such as gross earnings. You can see how you can override the default calculation type for selected values in the range.
Static Values
The calculation value definition for a regional income tax uses a default calculation type of Flat Rate. However, for the lowest and highest incomes, a flat amount applies. For these two values, the Flat Amount calculation type overrides the default type, and uses a monetary value rather than a percentage. The Basis of Calculation Values field is blank, so the values are static.
This table shows sample static values for a calculation value definition:
From Value |
To Value |
Calculation Type Override |
Rate or Amount |
---|---|---|---|
0 |
199 |
Flat Amount |
0 |
200 |
999 |
_ |
4 (percent) |
1000 |
1999 |
_ |
6 (percent) |
2000 |
999,999,999 |
Flat Amount |
300 |
Dynamic Values
The calculation value definition for a tax exemption uses a default calculation type of Incremental Rate. The first and last values specify the Flat Amount calculation type, which overrides the default type. The Basis of Calculation Values field specifies the Gross Earnings YTD database item. This means the From and To values represent a percentage of year-to-date gross earnings.
This table shows sample dynamic values for the calculation value definition:
From Value |
To Value |
Calculation Type Override |
Rate or Amount |
---|---|---|---|
0 |
.1 |
Flat Amount |
300 |
.1 |
.2 |
_ |
10 (percent) |
.2 |
.9 |
_ |
30 (percent) |
.9 |
1 |
Flat Amount |
0 |
The first row defines a flat amount of 300 CAD that applies to the first 10 percent of the gross earnings. The second row defines a 10 percent rate that applies to the next 10 percent of gross earnings. The third row defines a 30 percent rate that applies to between 20 and 90 percent of gross earnings. The final row defines a flat amount of 0 CAD between 90 and 100 percent.