Year End

11.4.2 Year End Processing: Allocate Tax – Income Tax

To begin the process of income tax allocation, click on NEXT – ALLOCATE INCOME TAX.

Mclowd will display the Allocate Income Tax screen illustrated below.

Allocate Income Tax

Either use the Calculated Weighted Average % shown (based on the MWA report,) or override the Calculated Weighted Average % by entering the preferred percentages in the OVERRIDE column. You can access the MWA Report to review how the Calculated Weighted Average percentages are calculated by clicking the MWA Report button at top right of the screen.


NOTE:  In accordance with current tax law, Mclowd will not allocate income tax to pension accounts. The Income Tax Allocation screen will not list pension accounts.


Check the income tax amount to be allocated to each member account. When you are satisfied the allocations appear correct, click ALLOCATE INCOME TAX.

Mclowd displays the following message, asking you to confirm your allocations: Click OK.

Confirm income tax allocations

Mclowd returns you to the screen illustrated below.Income tax allocation saved

 

The message in the yellow box confirms that Mclowd has allocated income tax to Individual Member Accounts successfully. A journal entry will have been created. You can inspect new balances by clicking the Accounting Page link in the yellow message box.

Click NEXT – DISTRIBUTE MEMBER TRANSACTIONS to move on to the next step in the Year End process.


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding.
Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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