Tax calc in EPBCS

In EPBCS, i configured tax (FUTA) to calculate based on a rate with a threshold.

Based on above, if a person has a salary of $10,000 pm, the tax amount should max it at 0.6%x$7000 (threshold amount) = $42.

However, it seems to calculate on the full amount of $10,000 resulting in $60 and then drops to $0 the next month as it has hit the threshold.

That is incorrect OR am I doing something wrong?