Tax Tables Window (Configuration)

This window is used for specifying the details about each type of tax your organization may withhold for employees. Much of the information you enter on this window and its tabs can be obtained from publications produced by the taxing authorities.

Tabs

Definitions tab indicates which tax code is used when further defining withholding information. It also allows you to set up the state tax reporting configuration for creating magnetic media.

Control tab defines which filing statuses can be used by employees for a tax code.

Table tab defines the tax limits and percentage rates using this tab. You must select a row on the Control tab before this tab may be used.

Options

The following options are available from the Options menu or the right-click menu:

· The Tax Code option opens the Select Tax Code window, which lists all previously defined tax codes. When you highlight a row and click OK, the Taxes window is populated with data for that tax code.

· The Configure Media Control option opens the Configure Media Control window, which allows you to store on Magnetic Media your organization's configuration values for state tax reporting.

Considerations for Setting Up Payroll Taxes

Most states are unique in their calculation of payroll taxes. Click the appropriate state below for more tax information for your consideration when setting up payroll taxes for that state.

Alabama

Only an AL tax row needs to be created for each employee.

Tax Code:	AL
Tax Types:	0	Person claiming zero exemptions
	H	Head of Household
	M1	Married Person filing separately
	M2	Married Person filing jointly
	S	Single Person

Two additional Tax Codes/Tables are used during the calculation of Alabama taxes. (Note that no Employee records need to be set for these Tax Codes.)

ALEXM	Alabama Exemptions	Table used to determine Exemption Amount
ALSTD	Alabama Standard Deductions	Table used to determine Standard Deduction Amount

Arizona

Tax Code:	AZ
Tax Types:	A	Employee Tax Rate Choice 1
	B	Employee Tax Rate Choice 2
	C	Employee Tax Rate Choice 3
	D	Employee Tax Rate Choice 4
	E	Employee Tax Rate Choice 5
	F	Employee Tax Rate Choice 6
	G	Additional 0.8% withholding

District of Columbia

Only a DC tax row needs to be created for each employee.

Tax Code:	DC
Tax Types:	M	Married
	S	Single

Louisiana

There is one Tax Type that can be used with LA.

Tax Code:	LA
Tax Type:	A	Standard tax rate is used in all state tax calculations.

One additional Tax Code/Table is used during the calculation of Louisiana taxes. (An Employee record needs to be set for this Tax Code.)

LADP

Dependent Credits

Table used to determine Dependent Credit Amount

There is one Tax Type that can be used with LADP.

Tax Type:

Standard tax rate is used in all state tax calculations.

Massachusetts

In addition to a MA tax row, rows for Head of Household and Blind Exemption may need to be created.

Tax Code for MA row:	MA
Tax Code for Head of Household Exemption row:	MAHH	Massachusetts Head of Household Exemption
Tax Type for Head of Household Exemption:	0	If employee is filing for Head of Household Exemption, the number of exemptions is 1.
Tax Code for Blind Exemption row:	MABL	Massachusetts Blind Exemption
Tax Type for Blind Exemption:	0	If employee is filing for Blind Exemption, the number of exemptions is 1.

Missouri

Only an MO tax row needs to be created for each employee.

Tax Code:	MO
Tax Types:	H	Head of Household
	M	Married Person - Spouse does not work
	M1	Married Person - Spouse works
	S	Single Person

New Jersey

Only a NJ tax row needs to be created for each employee.

Tax Code:	NJ	Tax Calculation:	8
Tax Types:	A	Rate Table A
	B	Rate Table B
	C	Rate Table C
	D	Rate Table D
	E	Rate Table E

New York (*includes Yonkers-specific tax tables as well)

Only a NY tax row needs to be created for each employee.

Tax Code:	NY	Tax Calculation:	8
Tax Types:	M	Married
	S	Single

Tax code details specifically for Yonkers, NY residents.

Only a NYYKR tax row needs to be created for each employee.

Tax Code:	NY	Tax Calculation:	21
Tax Types:	M	Married
	S	Single

Tax code details specifically for non-Yonkers, NY residents.

Only a NYYKN tax row needs to be created for each employee.

Tax Code:	NY	Tax Calculation:	22
Tax Types:	M	Married
	S	Single

Ohio

Tax Code:	OH	Tax Calculation:	8
Tax Types:	A	A Standard Tax Rate is used in all state tax calculations.

Locality Tax and School District Tax

Most localities within Ohio assess a locality tax and a school district tax. These taxes are usually a flat rate and are referred to as a Locality Tax or School District tax. The Tax Codes that can be used for this begin with ???OH??? and are followed by three characters that signify the locality or school district tax.

Tax Code:

OHCHL

(Hillsboro City)

Tax Calculation:

Tax

Classification:

Tax Types:

OHDHL

(Hillsboro school district)

Tax Calculation:

A standard rate is used in these tax calculations ("A").

The primary difference between a locality tax and a school district tax is the Tax Classification code using when defining the tax in the Tax Tables:

??? All locality taxes are defined with Tax Classification C

??? All school district taxes are defined with Tax Classification N

Oklahoma

Only an OK tax row needs to be created for each employee.

Tax Code:	OK
Tax Types:	M	Married
	S	Single

Oregon

Only an OR tax row needs to be created for each employee.

Tax Code:	OR
Tax Types:	A	Single with less than 3 allowances and annual wages up to 50,000.00
	B	Married or Single with 3 or more allowances and annual wages up to 50,000.00
	C	Single with less than 3 allowances and annual wages 50,000.00 or higher
	D	Single with 3 or more allowances and annual wages 50,000.00 or higher
	E	Married and annual wages 50,000.00 or higher

Pennsylvania

PA tax and Occupational Tax rows must be created.

Tax Code for PA row:	PA
Tax Code for Occupational Tax row:	PAOCC	Pennsylvania Occupational Tax
Tax Types:	A	Standard Tax Rate used in all Pennsylvania State Tax calculations

Most localities in Pennsylvania assess a municipality tax. This tax is usually a flat tax and is usually referred to as an Earned Income Tax or Locality Tax.

Tax Code:	PAMU1	PA Municipality Tax Code 1
Tax Code:	PAMU2	PA Municipality Tax Code 2

In some cases, a Pennsylvania locality may also assess an Emergency Municipality Services Tax. This tax is also a flat amount that is assessed per individual. It is tracked as a deduction and should be set up as a Benefit Deduction and assigned to each individual for which it is applicable with a flat amount and a defined cutoff amount.

Puerto Rico

PR tax and Exemption for Dependents rows must be created.

Tax Code for PR row:	PR
Tax Code for Exemption for Dependents row:	PREXM	Puerto Rico Exemptions (Automatic Computation)
	PREXO	Puerto Rico Exemptions (Optional Computation)
Tax Types:	M	Married Person filing jointly and claiming all of the personal exemption for withholding purposes
	M1	Married Person filing jointly and claiming half of the personal exemption for withholding purposes or Married Person living with spouse, who chooses the option computation and claims all of the personal exemption
	S	Individual Taxpayer and claiming all of the personal exemption

The number of Allowances for Deductions must be entered with the employee's PR record.

In order to calculate the ???Additional Exemption for Veterans,??? the associated employee???s ???Veteran of??? configuration must be selected on the Employee Master window, Biograph tab.

Creating the appropriate Exemption for Dependents row is based on whether an employee has chosen to use the Automatic or Optional computation method. The Automatic computation method is valid for all three Tax Types defined above. The Optional computation method is only valid for the M and M1 Tax Types defined above. The number of dependent exemptions must be entered with the employee's appropriate PREXM (Puerto Rico Exemptions) or PREXO (Puerto Rico Optional Exemptions) record.

For employees selecting Special Deduction for Certain Individuals, the Tax Code is PRDCI (Puerto Rico Deductions for Certain Individuals) using Tax Type A.

South Carolina

Only a SC tax row needs to be created for each employee.

Tax Code:	SC
Tax Types:	M	Married
	S	Single

Utah

Only a UT tax row needs to be created for each employee.

Tax Code:	UT
Tax Types:	M	Married
	S	Single Person