Taxing Wages 2023

Lithuania

Abstract

This chapter includes data on the income taxes paid by workers, their social security contributions, the family benefits they receive in the form of cash transfers as well as the social security contributions and payroll taxes paid by their employers. Results reported include the marginal and average tax burden for eight different family types.

Methodological information is available for personal income tax systems, compulsory social security contributions to schemes operated within the government sector, universal cash transfers as well as recent changes in the tax/benefit system. The methodology also includes the parameter values and tax equations underlying the data.

The Lithuanian currency is the Euro (EUR). In 2022, EUR 0.96 was equal to USD 1. In 2022, the average worker in Lithuania was expected to earn EUR 20 667 (Secretariat estimate).

1. Personal income tax system

1.1. Central government income tax

1.1.1. Tax unit

The tax unit is an individual.

1.1.2. Tax allowances

1.1.2.1. Standard tax reliefs

• A general (basic) allowance (tax-exempt amount) is applied in calculating the taxable income of residents to the extent the income is derived from employment or similar relationships. However, the size of the annual tax-exempt amount depends on the total amount of annual taxable income before taxes and all allowances (hereinafter – annual income). In 2022 the annual tax-exempt amount is EUR 6 480 for individuals whose annual income does not exceed twelve minimum monthly wages effective on 1 January of a respective calendar year (EUR 8 760 in 2022). For others, the annual tax-exempt amount is calculated using the following formula:

$\{<!--\; -->\begin{array}{c}6 480 -0.34\bullet \left(annual\mathrm{ }income-8\mathrm{ }760\right), if annual income\le 20 448, \\ 4 800 -0.18\bullet \left(annual\mathrm{ }income-7\mathrm{ }704\right), if annual income>20 448. \end{array}$

• If according to this formula a negative amount is calculated, then the tax-exempt amount is not applied. As such, no basic personal allowance applies if annual income exceeds EUR 34 370.67.

  An allowance for disadvantaged is applied as follows: in 2022 the annual tax-exempt amount applicable to individuals with a working capacity level of 0-25% or individuals who have reached the retirement age and have an officially recognized high level of special needs, or individuals with high-level disability, is EUR 10 440. The annual tax-exempt amount applicable to individuals who have a working capacity level of 30-55% or individuals who have reached retirement age and have an officially recognized level of medium or low special needs, or individuals with medium or low-level disability, is EUR  9 720. The tax allowance for disadvantaged is not included in the Taxing Wages calculations.

1.1.2.2.  Non – standard tax reliefs applicable to income from employment

• Contributions to 3^rd pillar pension funds, as well as additional voluntary health insurance contributions paid by the employer on behalf of an employee, are treated as non-taxable income (when such contributions combined do not exceed 25% of the gross wage).

• The following expenses incurred by a resident of Lithuania during the tax period may be deducted from his annual income (a total no more than 25% of annual income worth of expenses):

• Life insurance contributions paid for his own benefit or for the benefit of his spouse or minor children (adopted children) under life insurance contracts which provide for an insurance benefit not only upon the occurrence of an insurance event, but also upon the expiry of the term of the insurance contract.

• 2nd pillar pension contributions, paid by employees, exceeding 3% of taxable wage related income.

• Voluntary 3rd pillar pension contributions paid for his own benefit or for the benefit of his spouse or minor children (adopted children) to pension funds.

• Payments for studies (for vocational training under a formal vocational training programme, when appropriate qualification is obtained, a module of the formal vocational training programme leading to the acquisition of an appropriate competence (competences) and/or for studies when a higher education qualification is obtained) made by studying residents of Lithuania. If the resident does not have annual income, the deduction of expenses from the income can be made by parents and/or spouse. If payments for studies are made with borrowed funds (a loan is taken out from a credit institution for that purpose), the repaid amount of the loan during the tax period may be deducted from income.

• The deduction of expenses described above on life insurance and pension contributions applies only to expenses of up to a total of EUR 1 500 per year. The deduction of expenses for studies is unlimited.

1.1.3. Tax schedule

• A two-bracket progressive personal income tax rate system is applied on taxable wage related income: 20% applies for income equal to or below the threshold of 60 average wages per year (EUR 90 246 in 2022), 32% applies for income above the threshold. The tax is withheld by the employer at 20% rate from employee’s wage and paid up to two times a month. The 32% rate is applied and the difference between 20% rate and 32% rate is paid by the employee once per year, when filing the annual income tax return.

1.2. Regional and local income tax

There are no regional or local income taxes.

2. Compulsory social security insurance system

The compulsory social security insurance system consists of the following types of social security contributions:

• pension insurance;

• health insurance;

• sickness insurance;

• maternity insurance;

• unemployment insurance;

• insurance from accidents at work and occupational diseases.

The share of the wage above the “ceiling” is not subject to social security contributions (except Health insurance contributions). In 2022, the ceiling is set at 60 average wages per year (AW).

The AW applied to calculate the social security contribution base is approved by the law of Approval on Budget Indicators of the State Social Insurance Fund for the relevant year. It is the average gross monthly earnings (including salary data for the sole proprietorships) published by the Statistics of Lithuania of Q3 and Q4 for the year before the previous year and Q1 and Q2 for the previous year.

2.1. Employees’ contributions

Since 1 January 2021, the rate of the employee’s social security contributions is 19.5%, as follows:

• pension insurance – 8.72%;

• health insurance – 6.98%;

• sickness insurance – 1.99%;

• maternity insurance – 1.81%.

Employees pay social security contributions from their gross wage (including basic wage, bonuses, premiums, additional pays, severance pays, compensations calculated for annual and special leave as well as the monetary compensations calculated for unused annual leave, allowances and other benefits). The assessment period is the calendar month.

2.2. Employers’ contributions

Since 1 January 2021, the overall rate of the social security contributions of the employer’s is 1.47%, as follows:

• unemployment insurance – 1.31% for termless employment contracts and 2.03% for fixed-term employment contracts;

• insurance from accidents at work and occupational diseases – the overall rate is 0.16% (this is the rate that is modelled). In practice four categories of employers are set according to their history of accidents at work and occupational diseases. The tariffs for each of these categories are:

 

Category	Rate of contribution (%)
Category I	0.14
Category II	0.47
Category III	0.70
Category IV	1.40

A minimum amount (“floor”) of social security contributions is applied. Employers must pay a top up of the social security contributions (both employer’s and employee’s contributions) on the difference between minimum monthly wage and the actual wage, in case it is lower than the minimum monthly wage (i.e. the overall SSC, including health insurance contributions, paid both by employee and employer, must be paid from the amount not smaller than a set minimum wage). This applies to all workers except:

• The person has more than one insurer in Lithuania during the respective period or is insured by the State for pension insurance;

• The person receives social insurance pension from the State Social Insurance Fund;

• The person is not older than 24 years;

• The person is disabled;

• The person receives allowance for maternity or paternity leave.

2.3. Payroll tax

Employers pay 0.16% of the gross wage to the Guarantee fund.

If a company goes bankrupt the Guarantee fund is used to satisfy employees’ claims for the amount of his creditor’s claim, but not more than 6 minimal monthly wages.

Employers pay 0.16 % of the gross wage to the Long-term employment benefit fund.

The Long-term employment benefit fund is used for paying severance payments to long-tenure employees having lost jobs.

The ceiling for employer contributions will no longer apply from 2021. Some employers are exempt from these taxes (0.16% to the Guarantee Fund and 0.16% to the Long-term employment benefit fund), namely the Lithuanian Central bank and budget institutions (exempt from both Guarantee and Long-term employment benefit funds contributions), political parties, trade unions, religious communities and societies (exempt from Guarantee fund contributions). Given that the model covers the private sector only (sectors B to N by ISIC Rev.4) and that the Guarantee fund and Long-term employment benefit fund contributions are paid by the majority of employers within those sectors, these contributions are included in the model.

3. Universal cash transfers

3.1. Transfers related to marital status

None.

3.2. Transfers for dependent children

Child benefit in Lithuania depends on the age and number of children as well as the size of income of the family. In 2018 a non means-tested universal child benefit was introduced for all families raising children up to 18 years of age and over, if he / she is studying under the general education curriculum, but not longer, until he / she reaches the age of 21 (from 2022 - the age of 23). In 2022, the size of the universal child benefit is EUR 922.25 per child per year. An additional child benefit (EUR 542.81 per child per year, which is paid on top of the universal child benefit) is granted if family’s income per person per year did not exceed EUR  3 348 for families with up to two children. For families with three or more children and disabled children the additional child benefit is paid regardless of the amount of family income.

4. Main changes in tax/benefit system since 2000

4.1. Tax system

• In 2000 the 3^rd pillar private pension funds were introduced, allowing employees to voluntarily choose to accumulate for additional pension by taking part in the 3^rd pillar private pension funds or negotiate it with employer as part of employment contract. Contributions to such funds are financed by employees themselves, if they chose to take part in pension scheme voluntarily or by the employer on behalf of the employee.

• In 2003 a possibility to deduct certain expenses from taxable annual income incurred by a resident of Lithuania was introduced.

• In 2004 the 2^nd pillar pension system was introduced, allowing voluntary participation in the pension accumulation system which consists of a share of social security contributions paid by the employer, transferred to the pension fund on behalf of the employee.

• The personal income tax rate was lowered gradually from 33% to 27% as of 1 July 2006, then further to 24% in 2008 and again to 15% in 2009.

• In 2009 employee health insurance contributions were introduced together with a lower personal income tax rate.

• In 2009 a flat tax-exempt amount was replaced with a regressive tax exempt formula, gradually diminishing the tax-exempt amount at some level of income, therefore introducing an element of progressivity into taxation of wages.

• In 2014 the 2^nd pillar pension system was modified. A possibility to increase the size of the private pension contribution was introduced by allowing employees to contribute additionally from their own gross wage with an additional contribution from the State.

• In 2017 the deduction of expenses described in 1.122. on life insurance and voluntary 3rd pillar pension funds savings tax reliefs were given a “ceiling” and apply only to insurance premium of up to a total of EUR 2 000 per year.

• In 2018 the additional tax exempt amount (child allowance) was replaced by direct child benefits, which are paid without testing for family income.

• In 2018 a minimum amount (“floor”) of social security contributions was established. Employers calculate and pay employer’s share of social security contributions from a base not lower than minimum monthly wage. As of 1 July 2018 employers must pay not only the employer’s share, but also the employee’s share of social security contributions from a base not lower than minimum monthly wage.

• In 2019 a labour taxation reform was introduced. Most of the employer's SSC (a total of 28.9 p.p.) were shifted to the employee. The overall employer’s SSC rate in 2018 was 30.5%, an aggregated of:

  • pension insurance – 22.3%;

  • health insurance – 3%;

  • sickness insurance – 1.4%;

  • maternity insurance – 2.2%;

  • unemployment insurance – 1.4%;

  • insurance from accidents at work and occupational diseases – 0,2%

• Starting from 1 January 2019 pension insurance, health insurance, sickness insurance and maternity insurance were shifted to the employee side (22.3%+3%+1.4%+2.2%=28.9%)

• This resulted in a gross salary increase by 28.9% (enforced by law), as well as recalculation of SSC, personal income tax and payroll tax rates accordingly to neutralize the shift. Moreover, a share of SSC, covering the general part of pension, was shifted to personal income tax to ensure a sustainable financing source for financing the general part of pension from the State budget. Finally, personal income tax and SSC rates were reduced by a total of 1.55 p.p. (in the new taxation system) to ensure that take home pay does not decrease in case a person decides to participate in the 2^nd pillar pension system after the 2019 reform (which includes employee's contribution).

• In 2019, a two-bracket progressive taxation for labour income was introduced. The first bracket is taxed at 20%, while the second bracket – at 27% personal income tax rate (above the threshold of 120 average wages per year).

• In 2019, the ceiling for both employee’s and employer’s SSC (excluding health insurance contributions) and payroll taxes (contributions to the Guarantee fund and Long-term employment benefit fund) was introduced. It is applicable for the annual income above 120 average wages

• In 2020, the tax rate for second bracket was increased from 27% to 32% personal income tax rate and the threshold above which 32% rate is applied was reduced from 120 to 84 average wages per year.

• In 2020, the ceiling for both employee’s and employer’s SSC (excluding health insurance contributions) and payroll taxes was reduced from 120 to 84 average wages per year.

• From 2021 the ceiling is applied only for the employee's overall employment income (combined from all employers, as opposed to each employer individually, as was applied previously), except for health insurance contributions. The ceiling is no longer applied for the SSC paid by the employer.

• Since 2021 the ceiling for employee’s SSC (excluding health insurance contributions) was reduced from 84 to 60 average wages per year.

• Since 2021 the personal income tax threshold above which 32% rate is applied was reduced from 84 to 60 average wages per year.

• In 2022 the basic allowance formula was changed so that the annual basic allowances is first tapered rapidly (until around 12 average wages) and then gradually. Hereby the level of the taxation was reduced by increasing non-taxable amount only for those individuals whose monthly income did not exceeded the average wage. Applying the non-taxable amount to individuals with income above one average wage maintained unchanged.

• In 2022 the maximum non-taxable amount was increased from EUR 400 up to 460 and then from 460 up to 540 per month. Proportionally increased non-taxable amounts applicable to disabled.From 2022 temporary tax relief that was applicable from 2019 until 2021 (payments for repairs of housing (except renovation of multi-apartments), repairs of passenger cars and childcare services (made for one’s own benefit or for the benefit of one’s spouse)) was no longer available.

4.2. Benefit system

• Between 2000 and June 2004, the child benefit was paid for all children up to 3 years of age, provided that none of the parents received maternity (paternity) benefits. Families with three or more children, below a set threshold of income per family member, were given more generous benefit for children up to 3 years of age, as well as benefit for children from 3 years to 16 years of age.

• Between July 2004 and 2008, the child benefit was paid without testing family income. The range of the age of children for which the benefit was paid depended on the size of the family. Different age ranges were applied for families with three or more children (the top of the range remained 18 years throughout the period) and families with up to two children (the top of the age range was gradually increased from 7 years to 9 years in 2006, from 9 years to 12 years in 2007 and from 12 years to 18 years in 2008).

• In 2009, testing of family income was introduced for families with up to two children above 3 years of age.

• In 2010, the testing for the fact and the size of the maternity (paternity) benefit was introduced for children up to 2 years of age and testing of family income was extended to all children above 2 years of age.

• Between 2012 and 2016, testing of family income applied to all children and only in families with three or more children the child benefit was paid for children over 7 years of age.

• In 2017, testing of family income was abolished for families with three or more children regarding child benefits. Moreover, families with up to two children under 7 years of age were included in the means-tested child benefit scheme.

• In 2018, a universal child benefit replaced the abolished tax exempt amount for children. The universal child benefit is paid for every child from birth to the age of 18 years and over, if he / she is studying under the general education curriculum, but not longer, until he / she reaches the age of 21. The size of the universal child benefit is EUR 30.02 per child per month. Large and low-income families receive the additional child benefit (on top of the universal child benefit): to children from birth to the age of 2 years amounting to EUR 28.5 per child per month and to children from 2 to 18 years of age amounting to EUR 15.2.

• In 2019, the universal child benefit is paid for every child from birth to the age of 18 years and over, if he / she is studying under the general education curriculum, but not longer, until he / she reaches the age of 21. The size of the universal child benefit increased from EUR 30.02 to EUR 50.16 per child per month, while for the disabled children – to EUR 69.92. Large and low-income families receive the additional child benefit (on top of the universal child benefit) amounting to EUR 20.14 per child per month.

• In 2020, the universal child benefit is paid for every child from birth to the age of 18 years and over, if he / she is studying under the general education curriculum, but not longer, until he / she reaches the age of 21. The size of the universal child benefit increased from EUR 50.16 to EUR 60.06 per child per month. The size of the additional child benefit (on top of the universal child benefit) for large and low-income families increased from EUR 20.14 to EUR 40.17 per child per month, the additional child benefit of the same amount has been established for disabled children.

• In 2021, the universal child benefit is paid for every child from birth to the age of 18 years and over, if he / she is studying under the general education curriculum, but not longer, until he / she reaches the age of 21. The size of the universal child benefit increased from EUR 60.06 to EUR 70 per child per month. Large and low-income families and disabled children receive the additional child benefit (on top of the universal child benefit) amounting to EUR 41.2 per child per month.

• In 2022, the universal child benefit is paid for every child from birth to the age of 18 years and over if he / she is studying under the general education curriculum, but not longer, until he / she reaches the age of 23. The size of the universal child benefit increased from EUR 70 to EUR 73.5 (from 1 June 2022 – to EUR 80.5) per child per month. Large and low-income families and disabled children receive the additional child benefit (on top of the universal child benefit) amounting to EUR 43.26 (from 1 June 2022 – EUR 47.38) per child per month. Changes to labour taxation and benefit system due to the covid-19 pandemic

4.3. Changes to labour taxation and benefit system due to the covid-19 pandemic

In relation to the COVID-19 pandemic, the Lithuanian Government and the tax authorities decided to apply certain personal income tax and social security contribution related measures to assist taxpayers with their ongoing obligations.

Related measures by the PIT administrator - State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania (hereinafter - STI):

• STI published a list of tax payers which were directly hit and experienced adverse effects of COVID-19 pandemic. These tax payers are automatically subject to certain reliefs, applicable for tax debts incurred before 31 August 2021, and the following fiscal measures apply to the listed entrepreneurs:

  • Recovery of unpaid taxes is suspended. Interest on late payment are not to be calculated;

  • Accumulated unpaid taxes have can be paid without interest until 31 December 2022. In order to conclude a tax loan agreement without interest, taxpayers have to submit an application to the STI by 31 August 2021, and the agreement must be concluded by 31 December 2021. Otherwise, all accumulated unpaid taxes should be paid by 31 October 2021.

  • Possibility to pay accumulated unpaid taxes exists beyond 31 December 2022. Companies that cannot pay accumulated taxes within the set deadline can apply to STI for postponement of tax payment. Interest will be charged only on subsequent installments.

Taxpayers not on the COVID-19 list, but which have also experienced negative consequences of COVID-19, may apply to the tax authorities for the reliefs, as well as for conclusion of a tax credit agreement.

Related measures by the SSC administrator (State Social Insurance Fund Board):

• Aid measures apply to adversely affected insurers. An adversely affected insurer is an insurer whose activities are restricted because the quarantine has been announced in the territory of the Republic of Lithuania or the quarantine has been announced in the territory of the municipality, and if an insurer specifies in the prescribed application that he operates in this territory of the municipality, and:

  • who is automatically listed on the list “Legal entities that are subject to tax aid measures due to COVID-19 without submitting an application” that is published by the STI; or

  • whose application for tax aid measures due to COVID-19 has been approved by the STI.

Insurers, having not found themselves among the published taxpayers, but having suffered adverse effects due to COVID-19, may apply to STI for the said aid measures by submitting an application for the application of selected aid measures.

Recovery of unpaid taxes is suspended. State Social Insurance Fund Board would not start tax recovery if these companies have social security debts arising from a declaration filed from 16th March 2020 till 16th of June 2020 and from 7th of November 2020 (in local quarantines from 26th of October 2020) till the end of quarantine.

• The annual tax-exempt amount for the fiscal year 2020 was increased from EUR 4200 (as budgeted for 2020 before COVID-19) to EUR 4800 for individuals whose annual income does not exceed twelve minimum monthly wages effective on 1 January 2020 (EUR 7 284 in 2020). For others, the annual tax-exempt amount is estimated using the following formula:

  4 800– 0.19 x (annual income – twelve minimum monthly wages effective on 1 January of a respective calendar year).

• One-off child benefit to reduce the effects related with the COVID-19 pandemics was paid out in 2020. Low-income families with up to two children and families with three or more children, as well as families raising children with disabilities, are entitled to one-off payment of 200 euros per child. Other families with children are entitled to one-off payment of 120 euros per child. One-off child benefit was paid out for children who were / became child benefit eligible according to the Law on Benefits for Children throughout the period between 16 May 2020 and 31 December 2020.

5. Memorandum items

5.1. Average gross annual wage earnings calculation

The average gross wage is estimated by the Statistics Lithuania. For the purpose of this exercise the average annual earnings equal twelve average monthly gross wages in the industry sectors B–N by ISIC Rev.4 (private sector, including individual enterprises). The gross wage is monetary remuneration, which includes the basic wage, additional pays, overtime, compensations calculated for annual and special leave and payment for idle time.

5.2. Employer contributions to private pension and health schemes

2^nd pillar private pension funds. Between 2004 and 2018, employees could voluntarily choose to participate in the pension accumulation system which in 2018 consisted of three types of contributions to the pension fund: (1) a share of social security contributions paid by the employer was transferred to the pension fund on behalf of the employee (2 p.p. from the total contribution paid by the employer); (2) an additional contribution of 2% deducted from the employee’s gross wage to the pension fund; (3) another 2% of the Lithuanian average gross wage was transferred by the State. In total, if an employee chooses to participate in the pension accumulation system, roughly 6% (2+2+2) of gross wage was accumulated in the pension fund. However, the supplementary part of a social insurance pension will decrease for the period of participation in the accumulation of pensions depending on the amount of contributions paid. From 2019 all persons at age below 40, insured by social insurance, are enrolled in the 2^nd pillar system with a possibility to opt-out during the six months of the enrollment process (after this period the opt-out is not possible). If the person chooses to opt-out during the first auto-enrollment procedure, the procedure of auto-enrolment will be repeated every 3 years until the person reaches the age of 40. Pension accumulation system consists of two types of contributions to the private pension fund: (1) employee’s contribution – 3% deducted from the employee’s gross wage; (2) State’s contribution – 1.5% of the Lithuanian average gross wage is transferred by the State on behalf of the employee. Therefore, the overall contribution to the private 2^nd pillar pension funds is 4.5%, which corresponds to 6% (2+2+2) applicable before the tax reform of 2019.

3^rd pillar private pension funds. Employees can voluntarily choose to accumulate for additional pension by taking part in the 3^rd pillar private pension funds or negotiate it with employer as part of employment contract. Contributions to such funds are financed by employees themselves, if they chose to take part in pension scheme voluntarily or by the employer on behalf of the employee. Personal income tax relief related to the 3^rd pillar contributions are applied (see section 1.1.2.2).

Additional voluntary health insurance. Employees can voluntarily choose to additionally insure their health for services and medicines that are not covered under the mandatory health insurance scheme. Contributions to such insurance schemes are financed by employees themselves and / or third parties on behalf of the employee (employer, family members, etc.). Personal income tax relief related to the contributions paid by the employers are applied (see section 1.1.2.2).

2022 Parameter values

 

Average earnings/yr	Ave_earn	20 667	Secretariat estimate
Threshold for SSC ceilings	Threshold_SSC_ceilings	90 246
Allowances	Max_basic_al	6480
	Threshold_max_basic_al	8760
	Reduction_coeficient	0,34
	Max_basic_al_2	4 800
	Threshold_max_basic_al_2	7 704
	Reduction_coeficient_2	0,18
	Brake_point_basic_al	20 448
Income tax schedule	Tax_sch	0.20	90 246
		0.32
Tax credit	tax_cred	0
Minimum threshold for employer SSC and payroll tax	SSC_employer_min	8760
Employer’s SSC	SSC_rate_empr1	0.0147
	SSC_rate_empr2	0.2097
Employer’s payroll tax	PRT_rate_empr	0.0032
Employee’s SSC	SSC_rate_empee1	0.1252
	SSC_rate_empee2	0.0698
Universal Child benefits
For each child	UCB	922,25
Need-based child benefits
for each child	CB	543
Need-based family threshold
each member	F_thrsh	3072
Days in tax year	numdays	365

2022 Tax equations

The equations for the Lithuanian system are mostly on an individual basis. But child benefit is only calculated once.

The functions which are used in the equations (Positive, MIN, etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse.

 

	Line in country table and intermediate steps	Variable name	Range	Equation
1	Earnings	earn		=Ave_earn
		earn_net	J	=earn_total-CG_tax_total-SSC_empee_total
2	Allowances	basic_al	B	=Positive( IF( earn<Max_basic_al; earn; IF( earn<Threshold_max_basic_al; Max_basic_al; IF( earn <Brake_point_basic_al; Max_basic_al-Reduction_coeficient*(earn-Threshold_max_basic_al); Max_basic_al_2-Reduction_coeficient_2*(earn-Threshold_max_basic_al_2) ) ) ) )
3	Credits in taxable income	taxbl_cr	B	0
4	CG taxable income	tax_inc	B	=earn-basic_al
5	CG tax before credits	CG_tax_excl	B	=Tax(tax_inc,Tax_sch)
6	Tax credits (wastable)	tax_cr		0
7	CG tax	CG_tax	B	=Positive(CG_tax_excl-tax_cr)
8	State and local taxes	local_tax	B	0
9	Employees' soc security	SSC_empee	B	=IF( earn<Threshold_SSC_ceilings, earn*(SSC_rate_empee1+SSC_rate_empee2), (Threshold_SSC_ceilings*SSC_rate_empee1+earn*SSC_rate_empee2) )
10	Cash transfers	cash_trans	J	=Children*UCB+IF(earn_net<F_thrsh*(Married+1)+F_thrsh*Children;CB*Children;0)
11	Employer’s wage dependent contributions and taxes
12	Employer's soc security	SSC_empr	B	=IF( AND(earn>0, earn<SSC_employer_min), earn * SSC_rate_empr1 + (SSC_employer_min- earn)*SSC_rate_empr2, earn *SSC_rate_empr1 )
13	Employer's payroll	PRT_empr	B	=IF( AND(earn >0, earn <SSC_employer_min), SSC_employer_min*PRT_rate_empr, earn *PRT_rate_empr )
14	Total	Cont_empr	B	=SSC_empr+PRT_empr

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal S calculated on the spouse J calculated once only on a joint basis.