Payroll - Tax Scale

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Purpose

This document allows the user to enter or modify payroll tax scales.

Prerequisites

There are no prerequisites for this document.

Context

The tax scale data is provided by the Australian Taxation Office on a form called "Statement of Formulae for Calculating Income Tax Instalments". This document allows the user to enter in the data from this document for use in the LILAC payroll system.

You may use any names you like for these tables, but we suggest you used SCALE 1, SCALE 2 etc which is what the ATO calls them.

SCALE 2 is the one for employees who have lodged a deduction declaration. You can create as many scales are you actually need.

Tax scales are used to calculate income tax instalments.

About This Screen

Head of the Document
Field Enterable? Instructions
Tax Scale Yes Type in the key for this tax scale. Lennox Computer suggest using SCALE 1, SCALE 2, etc.
Description Yes Type in the description of this tax scale. Lennox Computer recommend using the description on the ATO form.
Date Yes Type in the date this tax scale is valid from. Lennox Computer recommend using he date on the ATO form.

Lines of the Document
Field Enterable? Instructions
Threshold Yes Type in the upper value of this range in whole dollars. Where thresholds are given as $xxx & over, enter 99999.
Coefficient A Yes Type in the marginal rate.
Coefficient B Yes Type in the additive coefficient.

From Here

Once tax scales have been established, paying an employee will correctly calculate there income tax instalment.