Hypothetical Tax Sample Clauses

Hypothetical Tax. UKESL will withhold from Xxxxxxxx’ wages in England taxes as if Xxxxxxxx was a resident of England. a hypothetical tax amount instead of the normal withholding of the United States tax. After the tax return is filed, another calculation (typically referred to as an equalization) is done to compare the hypothetical tax amount withheld from Xxxxxxxx’ wages to a revised hypothetical amount based on source income and calculated using final numbers from the tax return. Any difference between the numbers is equalized, i.e., any excess hypothetical withholding is refunded to Xxxxxxxx, and any shortage is due to UKESL. These are typically treated as W-2 wages, or a reduction in such wages, in the year of such payments. In the final year of coverage for Xxxxxxxx, any payment due to Xxxxxxxx will be grossed up for the associated taxes (including FICA) since Xxxxxxxx will not be covered by the tax equalization policy in the year of such payment. UKESL will include in annual compensation GBP 10,000.00 to cover anticipated tax equalization (the “Tax Equalization Add-On”). This Tax Equalization Add-On will be adjusted when a final tax calculation is computed as discussed above.

Hypothetical Tax. For tax equalised individuals, GSK will retain hypothetical tax based on the tax withholding rate of the country to where the employee is tax equalised (ie, to the extent allowable under law). GSK’s inability or failure to retain hypothetical tax does not invalidate the tax equalisation process. In general, the highest rates of withholding of each country will be applied, even if a reduced rate of withholding tax can be applied. The rate of tax and social security deducted is based on the advice / instruction given by the local GSK company. Where the employee is tax equalised to a non-withholding country, no hypothetical tax will be deducted at exercise. However, Home country hypothetical tax will be required to be paid to GSK, by the employee, on the same date the employee would have paid tax to the Home country tax authorities. Social security will be payable at maximum rates unless an income, or similar, cap is applicable. In this case it will be assumed that the cap threshold has reached.

Hypothetical Tax. The parties agree that the amounts otherwise due from any New Subsidiary shall be adjusted by a hypothetical tax cost or benefit (the "Hypothetical Tax") to such New Subsidiary as a result of income or losses, as the case may be, from operation by the Subsidiaries of the Business during the period from the Closing Date to the relevant Foreign Closing Date. The Hypothetical Tax shall be computed on a stand-alone basis, shall take into consideration only operating results and not gains or losses on asset transfers contemplated hereunder and shall not take into consideration any current or past losses or credits otherwise available to a Subsidiary. The tax rate used in computing the Hypothetical Tax shall be the maximum combined effective national, state and local rate, as shown on Schedule 1.12, provided, however, that, if, by reason of change in law, the actual rate in effect on the Closing Date or the date of the relevant Foreign Closing differs from the rate set forth on Schedule 1.12, the actual rate shall be used.

Hypothetical Tax. In order to equalize the tax obligation of your foreign service, a hypothetical U.S. income and social tax and state income tax is computed on your base salary and other cash income payments including any bonuses, commissions and other incentive compensation. Calculation of an estimated hypothetical tax amount designed to approximate the total year-end hypothetical U.S. tax liability is made at the beginning of each year of your foreign service. The tax consultant will determine this amount based on the appropriate components of your compensation. Questions about tax treatment of any compensation should be directed to the tax consultant. This estimated hypothetical tax will be deducted by Fair Xxxxx on the regular payroll schedule from your salary, incentive compensation, and any similar taxable earnings. Hypothetical tax deductions are used to fund your tax obligation on your Company-related earnings from Fair Xxxxx.