29.1.4 Table Amount Deductions

Lastly, we have a table of deductions. This is best used when the amount or rate of deduction varies with the gross amount of the check (as in Federal income tax). In this case, the Rate, Amount and Limit fields of the deduction master are ignored. Instead, a table of deductions is entered into Standard Deductions Detail File. Each record of the detail file represents one line of the deduction table. This way the tables can be as large or as small as they need to be. The entry in the flags field for these deductions is t.

The Frequency field of the Standard Deductions File in this case indicates what kind of a gross amount the table describes (yearly, quarterly, or monthly, etc.). This indicates what type of conversion has to be done to the gross amount of the pay check to put it within the bounds of the table. Once again, the allowance amount is adjusted by the deduction frequency and subtracted from the adjusted gross salary.

The Standard Deductions Detail File is similar to the Standard Deductions File with the addition of the minimum and maximum boundary fields. Each line of the table can use either the fixed amount or the percentage amount deductions described earlier. Thus you could set up a table like:

if gross amount is:

< $10,000 per year, deduct $20 per month

> $10,000 per year, and < $20,000 deduct 15%, limit $200 per month

> $20,000 per year, deduct 30%, limit $5,000 per year

As another special case, the percentage calculations understand another flag value: o. With this flag specified, the percentage is applied to the amount over the lower amount and the limit is ignored. You can also specify all three flags fpo. In this case, a fixed amount is charged and a percentage over the lower boundary is charged. These last options are needed to support the Federal income tax. A table for single people based on annual salaries might look like:

Lower Higher Flags Rate Amount Frequency

1,400 4,100 po 12.0 a

4,100 9,500 fpo 15.0 3229.00 a

9,500 14,400 fpo 19.0 1,1329.00 a

14,400 22,000 fpo 25.0 2,065.00 a

... etc ...