Example of Withholding Calculations for Contractor Services
These tables show the setup for the withholding, and the records for the F0411 table and Contractor Services Withholding - Payments Done table (F76A430) when you process vouchers for payment.
Withholding concept setup:
Concept |
Description |
Percentage |
Threshold Amount (Minimum) |
|---|---|---|---|
ENG |
Engineering |
1.2 |
400,000 |
ARC |
Architecture |
2.5 |
400,000 |
F0411 table records:
Voucher |
Supplier |
Concept |
Taxable Amount |
Withholding |
Comment |
|---|---|---|---|---|---|
#1 |
122 |
ARC |
100,000 |
0 |
No withholding because the minimum is not met. |
#2 |
490 |
ENG |
500,000 |
6,000 |
500, 000 ×1.2% = 6,000 |
#3 |
122 |
ARC |
350,000 |
11,250 |
450,000 × 2.5% = 11,250 Total of voucher #3 and the accumulated amount from voucher #1 exceeds the minimum, so withholding is calculated. |
#4 |
122 |
ARC |
10,000 |
250 |
460,000 × 2.5% = 11,500 − 11,250 = 250 Voucher #4 is added to the accumulated amount, withholding is calculated on the total, then the amount already withheld is subtracted to get new deduction amount. |
F76A430 table records:
Supplier |
Concept |
Year |
Taxable |
Withholding |
|---|---|---|---|---|
122 |
ENG |
2010 |
460,000 |
6,000 |
490 |
ARC |
2010 |
500,000 |
12,500 |