@tejas There are a couple of really big missing pieces in the payroll module from my perspective as a small US-based business related to taxation.
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You may want to take a look at this very long thread starting here. It describes the lack of any way to reference Gross Year to Date pay prior to the current payroll run in a formula. This is crucial because there are several taxes that have YTD thresholds in them.
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In most of the US, there is a need for two Income Tax slabs instead of just one because income is taxed similarly at the federal and state level. Frappe HR currently only allows one tax slab. That means most of us in the US have to define complicated custom forumlae instead of using tax slabs. Please reference this thread and this github issue.
I’m open to discussing further in a call/chat if you think that would be helpful.