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IMPLAN Employee Compensation Direct Taxes

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Luke Daniels

Hi,

We have modeled an employee compensation event and noticed that the direct tax results are $0.  We expected that there would be some direct payroll and personal tax associated with giving employees extra money. 

If we model $1M in employee compensation, and said that for direct effects, 25% of that $1M would be taxed at the federal income tax level, would that double count the tax impacts.  In other words, do the induced/indirect results already account for the direct personal and payroll taxes?

Thanks,

Luke

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    maria_lucas

    Hello Luke,

    Estimating the Direct Tax results for a Labor Income Event (Specification: Employee Compensation) would not double count the tax impacts. Labor Income Events do not generate Direct Taxes. Your approach is a great work around!

    Indirect and Induced Tax results only include Indirect and Induced Taxes. 

    Thank you,
    Maria 

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