The Tax Calc Inputs tab collects and displays the Tax Estimator inputs for the authorities selected on the General Info tab.

Tax inputs fall into 3 categories:

Assignment - defaulted from available information on the Employee or Mobility Details screens.
Policy - defaulted from the Calculation Details & Default Section of the Cost Estimate Template.
Country Specific - defaulted from the Tax Position Set.

Assignment

Tax Estimator

Home and Host Tax Estimators are defaulted per the values entered in the following fields on the Mobility Details Screen or Authorization Wizard:

Assignment From Country
Assignment From State/Province
Assignment To Country
Assignment To State/Province

The display order of the tax estimators can be configured on the Tax Estimator Availability Section of the Cost Estimate Template.

If changes to the Tax Estimators are made, ensure Refresh Inputs is clicked to populate the tax inputs relevant to the newly selected Tax Estimator. Note that when a Tax Estimator is changed, the defaulting of Tax Inputs is not honored, so all Tax Inputs must be reviewed/updated.

For estimators using the Host Gross To Net calculation method, the Country and State/Province fields are automatically populated based on the Assignment To Country and Assignment To State/Province.

Assignment Duration (In Months)

Assignment Duration is calculated based on move start and end dates entered on the Mobility Details Screen or Authorization Wizard, where:

start month is always counted (as a full month);
end month is only counted if the end date is the last date in that month.

See Cost Estimate System Preference (CEWHOLENUM) for more information.

Dependents

Both Family size and Marital Status in Calculation Inputs tab are both considered as part of the defaulting for the Filing Status and Dependents tax inputs

Example 1

Home Family Size = 1

Marital Status = Single

>> Default Filing Status = Single

>> Default Dependents = 0

Example 2

Home Family Size = 2

Marital Status = Married

>> Default Filing Status = Married

>> Default Dependents = 0

Dependent Defaulting

For Single Marital Status, number of dependents is calculated as Home Family Size minus 1.

For Married Marital Status, number of dependents is calculated as Home Family Size minus 2.

Note: the tax engine does not count the spouse as a dependent.

The default logic for Host Filing Status and number of dependents is the same as for Home (see Home Family Size section above), except when Host Family Size = 1, in which case Filing Status on the Tax Calc Inputs tab defaults to Single (even if the employee's Marital Status = Married).

See Ignore Accompanying Assignment Dependents in Cost Estimates (ACASGDEPCE) for more information.

Policy

Qualifies for Short Term Exemption?

Set this input to Yes to calculate income tax treaty exemption, typically for assignments with duration of less than 183 days. See Short Term Exemption for more information on this feature.

Calculate Social Taxes? (Home & Host)

The calculation of social taxes can be set at the template level, and adjusted if needed on a case by case basis per the below options:

Select Yes to always calculate.
Select No to never calculate.
Select Hypo Social Only to calculate Hypo social only, and never calculate Home Actual social tax.
Select Actual Social Only to calculate Actual social only, and never calculate Hypo social tax.
Select Automatic to apply social security agreements where applicable. See Automatic Social Tax Feature for more information. For temporary Assignment Types (i.e. Long Term, Short Term with Deductions and Short Term without Deductions), applicable social security agreements are applied if Assignment Duration is less than or equal to the covered period.

Tax Calculation Method

The Tax Estimator supports four calculation methods:

Equalization
Grossup Only
No Equalization
Gross to Net

Equalization

Calculates hypothetical taxes and home and host actual taxes (including grossup).

Grossup Only

Calculates home and host actual taxes (including grossup). The tax engine uses the With/Without method to calculate Tax With Transfer (on Base Compensation plus Allowances & Relocation Costs), and Tax Without Transfer (on Base Compensation only). The difference between these two calculations is the tax grossup on Allowances & Relocation Costs.

No Equalization

Calculates home and host actual taxes, without any gross up or hypothetical tax.

Gross to Net (U-Calc)

Calculates host gross pay based on the home country gross salary, adjusted for stay-at-home (hypothetical) taxes, net allowances and associated grossup tax.