Contents

require 'pry'

module Train::Tax::Calculator
  module WithholdingTax

    LOOKUP_TABLE = [
      { lowest:       0.00, highest:  20_833.00, base:       0.00, excess: 0.00 },
      { lowest:  20_833.00, highest:  33_333.00, base:       0.00, excess: 0.20 },
      { lowest:  33_333.00, highest:  66_667.00, base:   2_500.00, excess: 0.25 },
      { lowest: 66_667.00, highest: 166_667.00, base:  10_833.33, excess: 0.30 },
      { lowest: 166_667.00, highest: 666_667.00, base:  40_833.33, excess: 0.32 },
      { lowest: 666_667.00, highest: Float::INFINITY, base: 200_833.33, excess: 0.35 },
    ]

    def self.compute(basic_salary)
      taxable_income = basic_salary - Deductions.get(basic_salary)

      if basic_salary > 90_000
        monthly_taxable = ((basic_salary - 90_000) / 12.00)
        taxable_income  = taxable_income + monthly_taxable
      end

      tax_bracket = LOOKUP_TABLE.select do |bracket|
        taxable_income >= bracket[:lowest] &&
        taxable_income < bracket[:highest]
      end.first

      withholding_tax = ((taxable_income - tax_bracket[:lowest]) * tax_bracket[:excess]) + tax_bracket[:base]
      withholding_tax.round(2)
    end

  end
end

Version data entries

2 entries across 2 versions & 1 rubygems

Version	Path
train-tax-calculator-2.2.5	lib/train/tax/calculator/withholding_tax.rb
train-tax-calculator-2.2.4	lib/train/tax/calculator/withholding_tax.rb