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Cost estimates calculate home country social security when conditions apply for workers to remain on the home scheme during temporary assignments. When home social security is calculated, the part year output for Employer Portion Social Tax has been upgraded to calculate using the same approach as Employee Portion Social Tax, thereby increasing consistency and sophistication of the cost estimate.

This approach to derive the home social tax costs in part years entails:

The upgrade of home country employer costs aligns with the Work Time Split and Include Home Work Time Costs features in WICE introduced in AssignmentPro v.22.3. If an employee splits time on a project between the home and host locations, these features include home country employer costs for the project period instead of only the time spent in the host location.

The report on the left illustrates the impact of including home work time costs in WICE. Months In Host are used in the allocation of employee social tax. Total Work Time Months are used in the allocation of employer social tax to include the total time spent on the project in the home and host locations.

Changed the calculation of part year actual employer social security contributions and payroll tax for equalized cost estimates. The costs output by Home Country Employer Portion Social Tax and Home Country Payroll Tax are the calculated costs on annual income (annual base compensation, allowances, and tax grossup) less costs on the non-assignment portion of base compensation, i.e., the non-assignment portion of Employer Social Tax on Hypothetical Income and Payroll Tax on Hypothetical Income. This change aligns the calculation approach for employer costs with employee social security contributions.

As an example, consider an employee who goes on a three-month assignment to a location with a 10% employer contribution rate.

Previously, costs calculated on annual income were divided by 12 months and the output costs were the monthly costs multiped by Months in Host.

As a result of this change, recalculated equalized estimates with continued home country employer contributions may have different total costs, particularly those with Calculate Social Tax set to Yes or Automatic and a totalization agreement available with the host country.

AssignmentPro v.22.3 introduces the Work Time Split and Include Home Work Time Costs features to WICE. See the AssignmentPro release notes for details about these features, which are useful if an employee spends time on a project in the home and host location.

When the work time split feature is utilized and home work time costs are included, the costs output by Employer Social Tax on Hypothetical Income and Payroll Tax on Hypothetical Income will be calculated for the total work time months. When home work time costs are not included, these outputs will be calculated for months in the host location only (i.e., Months in Host).

Similarly, when home work time costs are included, Home Country Employer Portion Social Tax and Home Country Payroll Tax will output calculated costs on annual income less costs on the non-project portion of base compensation. When home work time costs are not included, these tax outputs are annual costs less costs related to the time spent in the home country regardless of whether the employee is working on the project.

Continuing with the above example, if the employee spends three months in the home country working on the project and Include Home Work Time Costs is enabled, the assignment portion of employer social tax is 6,636. The increase is due to the inclusion of the employer tax on base compensation while working in the home location. If Include Home Work Time Costs is not enabled, the assignment portion of employer social tax is 3,636, which is the same amount calculated above without use of the work time split feature.

Updates include calculation and rate changes to reflect current tax law resulting from inflation adjustments, legislative changes, and review of supported authorities. Effective dates indicate when the changes enter into force. Amounts are annual unless stated otherwise.

Income Tax: Corrected the earned income deduction to ARS 1.2 million. The previous deduction of ARS 2.1 million resulted in a maximum tax understatement of ARS 310,691.

Changed the following, effective July 1, 2022:

Income Tax: Removed the low- and middle-income tax offset (LMITO) credit which applied to resident employees with income below AUD 126,000.

Social Security: Increased the employer superannuation contribution rate and wage ceiling by 0.5% to 10.5% and AUD 5,200 to AUD 240,880, respectively.

Income Tax: Changed the following, effective July 1, 2022:

Income Tax: Corrected equalized assignments to deduct hypothetical tax. This deduction was incorrectly removed in v.22.2, resulting in an overstatement of tax.

Social Security: Decreased the disability and life contribution rate by 0.14% to 1.85%, effective January 1, 2022.

Income Tax: Increased the maximum Housing Allowance deduction by DKK 8,800 to DKK 29,600. This deduction is available when Homes Maintained in Both Countries? is set to Yes and a value is entered for Housing Allowance Host Country. This deduction was renamed on the Calculation Detail Report from Double Household Deduction to Travel Expense.

Social Security: Decreased the health insurance contribution rate by 0.1% to 5.73%, effective April 1, 2022.

Social Security: Increased the wage ceiling by EUR 3,386 to EUR 138,803, effective April 1, 2022.

Income Tax: Changed the following, retroactively effective January 1, 2022:

Social Security: Increased the pension wage ceiling by KRW 3.5 million to KRW 66.4 million, effective July 1, 2022.

Income Tax: Increased the maximum employee voluntary pension deduction by TTD 10,000 to TTD 60,000, effective January 1, 2022.

Social Security: Increased the monthly threshold at which employees become subject to National Insurance contributions by GBP 225 to GBP 1,048, effective July 1, 2022.

Income Tax: Increased the following for all filing status, retroactively effective January 1, 2022. Amounts shown apply to single taxpayers:

Social Security: Increased the monthly minimum salary to VES 130, effective March 15, 2022, which increased the following wage ceilings:

Added the following Treaties:

Changed the following, effective June 1, 2022: