Last updated for v.22.4
Common questions include "Where does this tax number come from?" or "How did the Tax Engine calculate this tax?".
This interactive guide is intended to show how the Cost Estimate Years 1-6 Summary is populated using values from the Calculation Detail Report.
Overview of calculation approach
When tax calculation method is set to Equalization, the Tax Engine calculates:
actual, and
hypothetical taxes
to determine the net costs to the employer.
This guide demonstrates using an example on how the user can reconcile the hypothetical, home actual, and host actual taxes from the Calculation Detail Report to the Cost Estimate Years 1-6 Summary. Additionally, see how taxable income is derived and the taxes calculated on that income.