The Generic Tax Estimator can be configured to use country specific default values which can then be automatically used for certain calculation inputs when generating Cost Estimates or Compensation Calculations only. This feature is particularly useful when the Home Country and/or Host Country on the Assignment Screen are not supported by the Equus Tax Engine or as a way of applying flat tax rates different to the ones for supported countries.
The configuration of the Generic Tax Estimator is done by selecting a country from the Countries screen. This must be done prior to generating the Cost Estimates or Compensation Calculations. Any changes made after the calculations are performed must be created again so that the values are included in the calculations.
Next, click on the Generic Tax Estimator tab.
The following fields are available to populate:
Use Generic Tax Estimator: This checkbox must be ticked in order for the input values to be used in the Generic Tax Estimator for Cost Estimates and Compensation Calculations. If the checked box is unticked and there are input values saved on screen, the input values will be ignored and not used.
Employee Social Tax Rate: Enter the rate as an integer e.g. 25 for 25%.
Employer Social Tax Rate: Enter the rate as an integer e.g. 25 for 25%.
Income Tax Rate: Enter the rate as an integer e.g. 25 for 25%.
Treat Relocation Expenses as Taxable?: Select <Yes> or <No> from the drop down list. This will show <No> by default.
For details about each input value field, click on the
icon.
Click [Save] to save the changes and [Close] to exit the screen.
To stop the Generic Tax Estimator from using the input values, either untick the Use Generic Tax Estimator checkbox or press [Delete]. Pressing [Delete] returns the values to the default setting (Use Generic Tax Estimator checkbox unticked; no values for any of the Tax Rate fields and <No> displayed for Treat Relocation Expenses as Taxable?.
Things to note when using this feature
The Generic Tax Estimator is not an available option in What-If Cost Estimates.
<Generic> appears as the country on screen and in production reports whenever a country has the Use Generic Tax Estimator checkbox ticked.
When the Use Generic Tax Estimator checkbox is ticked for a country selected as the Home Country on the Assignment screen, <Generic> appears in the Hypo Tax Calculator field on the General Info tab on the Compensation Calculation screen. Input Tax Rate, Employee Social Tax Rate and Employer Social Tax Rate fields are automatically populated with the country specific default values on the Calculation Inputs tab.
When the Use Generic Tax Estimator checkbox is ticked for a country selected as the Home Country on the Assignment screen, <Generic> appears in the Home Tax Estimator field on the General Info tab on the Cost Estimate screen. All four input values are automatically populated with the country specific default values on the Calculation Inputs tab.
When the Use Generic Tax Estimator checkbox is ticked for a country selected as the Host Country on the Assignment screen, <Generic> appears in the Host Tax Estimator field on the General Info tab on the Cost Estimate screen. All four input values are automatically populated with the country specific default values on the Calculation Inputs tab.
At this time, <Generic> home to <Generic> host assignment pairings will result in incorrect total costs.