Progress:
Progress = round ( (1 + 0.05 * recipe level difference) * (0.21 * Craftsmanship + 1.6) )
For every level a recipe is above you, up to 5 above, you take a 10% penalty to progress.
For every level a recipe is below you, up to 5 below, you gain a 5% bonus to progress.
For every addition level greater than 5 level below you, you gain another 2-2.5% (needs refinement) bonus to progress, until 15 levels below you.
After 15 levels, it continues to gradually increase until around 55% bonus
Quality formula:
Quality = round ( (1 - 0.05 * recipe level difference) * (0.36 * Control + 34) )
Level difference is only a quality penalty for recipes above your level, never a bonus for recipes below your level.