Tax Brackets

Tax Brackets

Tax Brackets define effective-dated tax slabs used by payroll.

Fields

  • Bracket Name - slab name.
  • From Amount - lower salary bound.
  • To Amount - upper salary bound; blank can mean no upper limit.
  • Rate - percentage rate.
  • Fixed Amount - additional fixed tax amount if used by your setup.
  • Effective From - start date.
  • Effective To - end date if temporary.

Workflow

  1. Create slabs in logical order.
  2. Use effective dates carefully when tax rules change.

Notes

  • Overlapping ranges or overlapping effective dates can produce unclear results if not planned.
  • The top bracket is usually modeled with a blank To Amount.