Setting up progressive tax rates

[Derek Atkins]

Hi,

"Dima - hotmail" <dimamushta at hotmail.com> writes:

> thanks Derek,
> it is exactly requirements from payroll.....
> I'm just on the way of choosing the right solution that would feet my
> requirements...
> So it's seems that I have to manage several programs that could help
> me to cover the basics of SMB needs.....
> But, even I created those tables - how should I deal if the amount
> falls in between?

What do you mean "falls between?"  The tables have to connect
somehow, there is no "in between".  If the number is 0-200 you
use the 0-200 table.  If the number is 201-500 you use the
201-500 table.

Or are you asking "what do I do if the number is "200.25"?  Well,
what does the law state?  Obviously the table itself is designed
for whole dollar amounts so you need to ask how to round.  I suspect
it would be "200.01 - 500"

> The idea was to automatically compute the taxes to be withheld
> ... (currently it is being done with excel sheet - that requires a lot
> of efforts on verifying the correctness.....)

Right.  well..  

I certainly would love to see the hooks for a payroll system in
gnucash.  My theory is that it could use scheme for the actual table
definition and computation.  Of course you also have to deal with
other kinds of withholdings and deductions, pre-tax, and post-tax..
And of course ordered taxes, too, because some taxes get taken on the
gross amount, not the net amount.

It's all very complicated.

-derek

> --------------------------------------------------
> From: "Derek Atkins" <warlord at MIT.EDU>
> Sent: Monday, October 06, 2008 11:23 PM
> To: "Dima - hotmail" <dimamushta at hotmail.com>
> Cc: <gnucash-user at gnucash.org>
> Subject: Re: Setting up progressive tax rates
>
>> Hi,
>>
>> Quoting Dima - hotmail <dimamushta at hotmail.com>:
>>
>>> Hi All,
>>>
>>> I have a situation when I needed to calculate the tax which has
>>> base brackets, the example is as follows:
>>> from 0 to 200 - tax 5%
>>> from 201 to 500 - tax 10%
>>> from 501 to 2000 - tax 15%
>>> from 2001 to 3000 tax 20%
>>> from 3001 to 4000 tax 25%
>>> from 4001 to 5000 tax 30%
>>> above 5001 - tax 35%
>>>
>>> So - the question is - is it possible somehow to setup the system
>>> to calculate said scheme?
>>
>> Not directly, no.  You could do it with a set of seven different
>> tax tables (one for each bracket).
>>
>> Having this kind of dynamic tax table is much of the work for a payroll
>> system (which GnuCash does not have).  Adding it would be a welcome
>> addition but nobody is working on it now.
>>
>>> Thanks in advance,
>>>
>>> Dmitry
>>
>>> Please remember to CC this list on all your replies.
>>> You can do this by using Reply-To-List or Reply-All.
>>
>> -derek
>> -- 
>>       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
>>       Member, MIT Student Information Processing Board  (SIPB)
>>       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
>>       warlord at MIT.EDU                        PGP key available
>>
>>
>
>

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available