In this step, you maintain the high and low tax rates for the Employer Monthly Schedule (EMS). These tax rates are used during EMS processing to determine each month whether the 'Lump sum taxed at low rate' checkbox on the EMS should be selected for the employee.
An employee earned more than $38,000 between April 1 1999 and March 31 2000. He or she also received a lump sum which was taxed at the low rate (21% instead of 33%). At the end of the financial year, the employee is required to pay additional tax on the lump sum because he or she earned over the earnings threshold and yet paid the low rate of tax on the lump sum.
The SAP System contains the following constants:
To change the high or low tax rates, select the appropriate constant and change the percentage in the Value field.