MANAGEMENT

Detailed explanation-1: -You simply add up all of your income sources before any tax deductions or taxes. For example, if last year you earned $100, 000 in salary, $1, 000 in interest income, and $12, 000 in rental income, your gross income for the year would be $100, 000 + $1, 000 + $12, 000 = $113, 000.

Detailed explanation-2: -The formula for calculating tax expenses is: Taxable income x tax rate = income tax expense. For example, if the business had a total taxable income of $100, 000 and the tax rate is 10%, the estimated income tax payable will be $10000.

Detailed explanation-3: -Net Pay = Gross Pay – Deductions and Taxes It’s that simple. All you have to do is figure out your gross pay and total deductions and taxes, then subtract the latter from the former.