Calculating Your Tax
from .32 to .54 is taxed two cents. The tax table progresses in a similar pattern.
To calculate your tax rate
1Using The Worksheet on page 119, complete Step A with the appropriate amounts from your state's Retail Tax Chart.
2For the following, see the Example Tax Chart, Step B:
The difference between the starting amounts of each consecutive tax bracket is called a breakpoint. Every tax table consists of a particular sequence of breakpoints.
In our Example Tax Chart, the difference between .00 and .13 is .13 cents. This 13 is the first breakpoint. The difference between .13 and .32 is .19 cents, which means 19 is the second breakpoint.
The breakpoints continue in a particular sequence through the entire tax table. It is this particular sequence of breakpoints that is used to determine the programming code.
•Using The Worksheet, complete Step B by calculating the breakpoints based on your state's Retail Tax Chart.
•The sequence of breakpoints is divided into Regular and Irregular patterns. All tax tables repeat a pattern of irregular breakpoints that lead into a pattern of regular breakpoints.
To determine the breakpoint pattern, continue calculating the breakpoints in Part B until you have found the Regular repeat breakpoint pattern.
From our example:
Breakpoints 13, 19, 23, 27, 27, 29 are the Irregular breakpoint pattern. Breakpoints 25, 25, 25, 25 are the Regular repeat breakpoint pattern.
The Regular repeat breakpoint pattern is a point where you first see a repetition of one or more numbers, which must then add up evenly to 100, 200, 300, and so on. In our programming example, the Regular breakpoint pattern (25, 25, 25, and 25) adds up to 100.
Using The Worksheet, determine the Regular breakpoint pattern based on your state's Retail Tax Chart.
3For the following, see the Example Tax Chart, Step C:
The first number to be programmed consists of the Base Tax followed by the number 1. In PRG position, type your Base Tax number, followed by the number 1, then press the Tax 2 key.
•The Base Tax - A base tax is defined by local or state government and refers to the minimum point where no tax is charged. If no tax is charged from .0 cents to .12 cents, then .12 cents is your base tax.
Alpha 583cx User’s Guide | 115 |
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