Puerto Rico Christmas Bonus Tax Calculation
SummaryPuerto Rico Christmas Bonus Tax Calculation
We have a requirement to calculate tax rates for Puerto Rico Christmas Bonus.
- If the bonus amount > 1500 then the employer shall determine an effective withholding rate for each employee. This rate will be the ratio that the total tax withheld during the payroll period closest to the
bonus payment bears to the total employee’s salary in said period. Multiply this rate times the bonus total.
- If bonus amount > 600 and <= 1500 then use 7% as the rate and feed the calculated amount to the tax adjustment element. Again, you'll need the Geocode for Puerto Rico to pass to the indirect element in b.