TX-DE-RATE

TAX DEDUCTION RATE
AMOUNT of Deduction or Exemption OR RATE used to compute Deduction.

DOLLAR AMOUNTS are entered as WHOLE DOLLARS (no decimal necessary)
PERCENTAGE RATES are entered as DECIMAL VALUES. (15% = .15)

Example:                (ALL TAX COMPUTATIONS ARE DONE USING ANNUAL TABLES)

When to Compute                How to Compute                                Rate                                Limit

Before Table                                4- Rate times Gross                .10                                1000
(10% of Gross Pay is computed as the DEDUCTION AMOUNTwith an UPPER LIMIT of $1,000)
 
Before Table                                1- Amount times # of Ex.                800
(to the above Deduction is added $800 for each Exemption in his Employee Master.

The above Deduction is then SUBTRACTED from Gross Pay BEFORE TAX is computed.