Specifications

19
Formulating a Tax Table
In some locales where taxes do not follow straight percentage rates, it is
necessary to enter the tax table. Before beginning tax table
programming, obtain a local tax chart and determine tax breaks for your
area.
Determine the lowest amount to be taxed, and the amount of tax that is
added at that point (some areas add .05 at the first breakpoint). Next
determine the tax break points by checking the chart for the highest
amount allowed before each penny of tax is added. The difference
between the high amounts (before each penny is added) determine the
tax break point.
As break points are determined, a pattern will appear. Once the pattern
has developed, it is repeated for all remaining amounts. However, the
first few break points will not fit this pattern. They are referred to as non-
repeat breaks.
The ER-180 allows for 20 breakpoints to establish repeated tax break
pattern. The following example is for an Illinois 4% tax.
TAX
AMOUNT RANGE
BREAK
POINT COMMENTS
0 .00 - .12

First taxable amount = .13
1 .13 - .31 19 Difference between .12 & .31
2 .32 - .54 23 Difference between .31 & .54
3 .55 - .81 27 Difference between .54 & .81
4 .82 - 1.08 27 Difference between .81 & 1.08
5 1.09 - 1.37 29 Difference between 1.08 & 1.37
6 1.38 - 1.62 25 Repeating breakpoints begin
7 1.63 - 1.87 25
8 1.88 - 2.12 25
9 2.13 - 2.37 25
10
2.38 
Pattern established