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. |
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Lines of the Document |
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| 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.