This appendix contains the following topic:
Calculating State Withholding Tax
This appendix explains the calculations for State Withholding Tax.
If you enter D or L as the calculation basis (See the Calculation basis field of Tax tables entry for state codes), SWT is calculated in the following manner:
| • | Added SWT: |
If Added SWT calculation method is by percentage, this equals:
(Supplemental Earnings x suppl earn w/h %) +
([SWT Gross Wages - gross wage cut-off amt] x
employee added SWT %)
with the restriction that [SWT Gross Wages - gross wage cut-off amt] may not be negative.
If Added SWT calculation method is simply an amount, this equals:
(Supplemental Earnings x suppl earn w/h %) + employee added SWT $
| • | State W/H Tax (for the period): |
([Annual Tax from Table using Tax Table Income - State Cr $] ¸
Yearly Pay Frequency Factor) + Added SWT
If Added SWT calculation method is by surcharge percentage:
Total State W/H tax = State W/H tax (for the period) + [State W/H tax (for the period) x employee Added SWT surcharge %]
| • | Tax Table Income: |
([SWT Gross Work Amount - Adjustment for FWT - Adjustment for social security - Adjustment for medicare] x Yearly pay frequency factor) - Total exemption amount - Standard deduction - Additional deduction
| • | State CR $: |
If employee state cr $ is an amount, this equals:
employee state cr $
if employee state cr $ is a percentage rate, this equals:
annual tax from table x employee state cr $ ¸ 100
| • | SWT gross work amount: |
SWT base work amount x base gross pct
| • | Adjustment for FWT: |
FWT w/h x pct of FWT to adjust [not to exceed max FWT adjustment]
| • | Adjustment for social security: |
social security w/h x pct of social security to adjust [not to exceed max social security adjustment]
| • | Adjustment for medicare: |
medicare w/h x pct of medicare to adjust [not to exceed max medicare adjustment]
| • | Total exemption amount: |
employee exempt SWT $ + employee exempt SWT # x state w/h allowance amt
| • | Standard deduction: |
the larger of:
min standard adjustment
or
(SWT base work amount x yearly pay frequency factor x standard adj pct of gross pay) [not to exceed max standard adjustment]
| • | Additional deduction: |
the larger of
zero
or
(additional adjustment percent x [SWT base work amount x yearly pay frequency factor - # employee SWT exempt x additional adjustment exemption value - additional adjustment base deduction]) ¸ 100
| • | SWT base work amount: |
SWT gross wages up to gross wage cut-off amt
If you enter P as the calculation basis, SWT is calculated in the following manner:
| • | Added SWT: |
If added SWT calculation method is by percentage:
(supplemental earnings x suppl earn w/h %) + ([the larger of zero or{SWT gross wages - gross wage cut-off amt}] x employee added SWT %)
If Added SWT calculation method is simply an amount:
(supplemental earnings x suppl earn w/h %) + employee added SWT $
| • | State w/h tax (for the period): |
tax from table using tax table income + added SWT
Note: tax from table is already for the period
If added SWT calculation method is by surcharge percentage:
total state w/h tax = state w/h tax (for the period) + [state w/h tax (for the period) x employee added SWT surcharge %
| • | Tax table income: |
FWT w/h