Tax Rate Table - A summary of the activity

Creating a Rate Table: Through this activity, you can specify a rate table based on which the employee’s tax is computed. These tax rates are dependent on the income earned by the employee. Creating a rate table requires you to enter the following items of information.

• The tax year:  You are to specify a tax year for which the rate table is applicable. You can also specify an earlier tax year and make it applicable to the current tax year if the tax rates are the same.

• Separate tax for each range of income: You are to record the different ranges of income, and the percentage/amount to be levied for each income range. The income tax authorities issue this information.

Later, the employer deducts the taxes from the employee’s income, based on the amount/percentage applicable for the employee’s income range.

Apart from creating the tax table, you can also modify the details specified earlier.

Getting familiar with the pages inside

Prerequisites

A tax year must have been defined in the “Create Tax Year” activity.

What you can do in this activity

Maintain Tax Rate Table

Maintain Tax Rate Table

You can create and modify a tax rate table.

• Specify the tax year for which the rate table is defined.

• Specify the range of income and applicable tax rates.

• Save the details.