Income Tax Table Screen Field Reference
This screen reference describes the fields in these tabs:
General tab
| Feld | Beschreibung |
|---|---|
| FIT Deduction Type | If the income tax table is for a state, local, or miscellaneous tax authority, select when this tax is calculated.
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| FIT Deduction Limit | If the FIT Deduction Type field is After, enter the maximum amount of federal income tax that can be deducted from employee earnings. |
| Standard Deduction Percent | If the Payroll Tax Authority calculates the standard deduction using a percentage of earnings, enter the standard deduction percent as a percentage with up to five decimal places. Earnings are multiplied by this percentage to determine the standard deduction amount. The standard deduction amount is then subtracted from gross earnings to determine taxable earnings. In addition to entering the standard deduction percent, you should also specify values for the minimum and maximum standard deduction amounts. |
| Maximum Standard Deduction | Enter the maximum standard deduction, which is the maximum amount that can be deducted from earnings to calculate taxable earnings. If the Payroll Tax Authority is Federal, this field must be 0. For example: Suppose the standard deduction percentage is 10% and the maximum deduction is $1,000. If an employee's gross earnings are $25,000, standard deduction calculation ($25,000 * .10) is $2,500; however, only $1,000 would be deducted from gross earnings, which results in taxable earnings of $24,000. ProContractor uses this information with the standard deduction percent to determine the amount of the deduction. |
| Minimum Standard Deduction | Enter the minimum standard deduction, which is the minimum amount that must be deducted from earnings to calculate taxable earnings. If the Payroll Tax Authority is Federal, this field must be 0. For example: Suppose that the standard deduction percentage is 10% and the minimum deduction is $1,000. If an employee's gross earnings are $5,000, the standard deduction calculation ($5,000 * .10) equals $500; however, the minimum $1,000 would be deducted from gross earnings resulting in taxable earnings of $4,000. ProContractor uses this information with the standard deduction percent to determine the amount of the deduction. |
| Standard Deduction Amount | If the Payroll Tax Authority uses an amount for the standard deduction, enter the standard deduction amount that is applied to earnings. This is subtracted from gross earnings to arrive at taxable earnings. |
| Weekly Tax Limit | Enter the maximum amount of this tax to be withheld for an employee in a pay week. |
| Round Tax to Nearest Dollar | Indicate whether the taxing authority requires calculations to be rounded to the nearest dollar. |
| Monthly Tax Limit | Enter the maximum amount of this tax to be withheld for an employee in a single month. |
| Annual Tax Limit | Enter the maximum amount of this tax to be withheld for an employee in a year. |
| Status | Select the status of the income tax table.
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| Notiz | Enter any comments or notes about the income tax table. |
| Tax Basis | Select the basis for the tax table.
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| Allowance Type | Select the allowance type to determine how allowances are calculated.
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| Allowance Amount 1 | Enter the dollar amount for the first allowance that employees can claim. The amount entered applies only to the first allowable allowance. |
| Allowance Amount 2 | Enter the dollar amount for the second allowance that employees can claim. The amount entered applies only to the second allowable allowance. |
| Allowance Amount 3 | Enter the dollar amount for the third allowance that employees can claim. The amount entered applies only to the third allowable allowance. |
| Begin Tax After MTD Earnings Reaches | Enter the amount of month-to-date earnings to exclude from tax. Tax is not calculated for an employee until their monthly earnings reach the amount entered in this field. |
| Begin Tax After YTD Earnings Reaches | Enter the amount of year-to-date earnings to exclude from tax. During calculation, this amount is subtracted from the tax basis (annualized earnings). |
| Employment Credit Limit | For Canadian payroll, enter the amount of the federal Canada employment credit. |
| Total Claim Amount on Form TD1 | For Canadian payroll, enter the default total claim amount for the federal form TD1 Personal Tax Credits Return. You can override this amount for an individual Employee screen using the Additional Tax Factors. This field is only available for federal tax authorities. |
| Total Claim Amount on Form TD1P | For Canadian payroll, enter the default total claim amount for the provincial form TD1 Personal Tax Credits Return. You can override this amount for an individual Employee screen using the Additional Tax Factors. This field is only available for provincial tax authorities. |
Brackets tab
Each row in the grid is a tax bracket based on an employee's annual earnings. As you enter the starting amount for each bracket, ProContractor sets the ending amount where the next bracket begins. The last bracket ends at 999999999999.99. You must enter at least one tax bracket in order to save the income tax table.
| Feld | Beschreibung |
|---|---|
| Bracket Number | This field provides a sequential number representing a tax bracket. |
| Wages Over | Enter the minimum annual employee earnings for calculation within this bracket. |
| Base Tax Amount | Enter the base tax amount to withhold for this bracket. |
| Tax Rate | Enter the tax rate as a percentage with up to five decimal places to calculate the tax for earnings within this bracket. |
Tax Routine Overrides tab
Some states and provinces have unique calculation rules, such as an alternate standard deduction, personal tax credit, or an annualizing factor, that cannot be captured in a standard income tax bracket. In these cases, ProContractor uses tax override routines to apply these rules as it calculates taxes and deductions.
Use the Tax Routine Overrides tab to select the override routine for the payroll tax authority and to enter the values associated with the calculation rules.
| Feld | Beschreibung |
|---|---|
| Income Tax Override grid - Each row in the grid is a tax override routine. Select | |
| Income Tax Override | Select the override routine for the payroll tax authority and withholding status combination. |
| Income Tax Override Name | Displays the name of the Income Tax Override. |
| Income Tax Override Memo | Displays the long description for the Income Tax Override. |
| Override Brackets grid - Each row in the grid is a set of values associated with the override routine selected in the Income Tax Override grid. The fields in the grid are generic because the values needed are unique to each override routine and correspond to the tax authorities' calculation rules. Select | |
| Bracket Number | Displays a unique identifier for this line item. |
| Amount 1 through Amount 8 | Enter the 1st through 8th amounts to store with this override. |
