Allocating tax (legacy method)
The Allocation of tax to member accounts is performed in two steps.
- First, Mclowd allocates the tax on contributions made to each member account. Tax is calculated according to the contribution type specified when the contribution was posted.
- Secondly, Mclowd allocates the Income Tax payable by the Fund to taxable member accounts. Income tax allocation is calculated by using the Member Weighted Balances.
ALLOCATE CONTRIBUTIONS TAX
When you choose NEXT – ALLOCATE CONTRIBUTIONS TAX, Mclowd displays the Contributions Tax Summary Screen.
For each member, this screen shows contributions made during the year, tax on contributions, insurance premiums and tax on premiums, and total contributions tax.