Dear Basically ,
Monthly Taxable Incomewage type (/4MI)
The system provides the closest approximation to the monthly gross income. This value is calculated as follows:
Assuming that the Gross Total Income (GTI) is represented as:
- Gross Total Incomewage type (/434) for April = G1 * 12
- Gross Total Incomewage type (/434) for May = G1 + G2 * 11
- Gross Total Incomewage type (/434) for June = G1 + G2 + G3 * 10,
where, Gn is the Monthly Gross Income for the nth period. Now, to calculate the value of G1 (Monthly Gross Total Income for April), the system divides the Annual Gross Total Income by the projection factor. Once G1 is available, the system can calculate further values using the following formula:
- G2 = ((G1 * Projection factor of previous period) + (GTI of current period - carried forward amount in the In Period due to retroactive run) - GTI of previous period) / Projection factor of current period.
Here, before computation, the GTI for current period and previous periods are reduced by the irregular incomes earned during that period because the irregular income is a one time payment. Also, as in the equation, the carried forward amount in the current period is not considered for the computation. This amount is also a one time payment and is added separately to the computed value.
- Monthly Taxable Incomewage type (/4MI) = G2 (as computed above) + Mon Irr Income wage type (/125) + Carried forward amount (BF Basic Arrears wage type (/ZBS) + irregular income carried forward, if any)
In your case you can say that :
/4MI = 120000/3 + /125 + /ZBS + (IN CRT any value for irregular Income ).
/4mi = 40000 + 2000
/4mi = 42000
Any concern ...i cant explain you any more dear please understand from above formula ..