They simulate assessments of different families’ tax liabilities and benefit entitlements using a detailed representation of relevant policy rules and parameters (including tax rates, benefit eligibility criteria, and any rules determining the interaction of relevant policy areas, such as whether some benefits are taxable or not). On the tax side, simulated payments include income taxes and mandatory contributions to public or private social insurance schemes. On the benefit side, calculations account for all cash transfers that are typically available to able-bodied working-age individuals and their families: unemployment benefits, social assistance, housing benefits for rented accommodation, other minimum-income benefits, family benefits, and in-work transfers. They include work-incentive measures (e.g. marginal effective tax rates) and indicators of income adequacy (e.g. the net income of benefit recipients or low-wage workers relative to commonly used poverty thresholds).