To enable you to correctly calculate tax liabilities for various members and correct profit distribution among members, Mclowd™will calculate Member Weighted Averages and compose a Member Weighted Average (MWA) Report.
You can manually override the % allocations calculated by Mclowd, if necessary, in both the Net Profit and Loss Allocation to Member Accounts and the Allocate Income Tax screens.
Simply type your values in the Override field before pressing the ALLOCATE button.
The MWA report is available for download and review by clicking the MWA REPORT button at top right of this screen. The report shows how historical data was used to calculate the MWA.
This report can optionally be exported to Excel for supply to your auditor and retention in fund records.
Your MWA report will list (and factor into the calculation) all segregated transactions, including member contributions, roll-ins, segregated income, and segregated expenses (e.g. insurance).
By considering segregated transactions, and the number of days in the financial year for which the respective income or expense increased or reduced the Fund's asset balance, Mclowd™calculates the percentage of the Fund that rightly attributes to each member.
This calculation is useful for assessing tax obligations where some members are in Pension phase (and their income is tax exempt) and some members are in Accumulation phase (and income in taxed).
These percentages are also used to calculate the percentage of annual profit/loss to attribute to each respective member.
The information in the MWA Report will assist an actuary to provide the Actuarial Report needed to claim income tax exemption for members in Pension Phase. If your Actuary makes adjustments to the percentages calculated by Mclowd, you can manually override the percentages shown when Mclowd™allocates Tax and Profit, by typing new values into the Override fields.
Return to the Net Profit and Loss Allocation screen after checking the MWA report and accept or override the percentage values shown for each member account.
