Most states follow the same principles as the Federal in so much as they use Exemptions and Deductions and Rate Tables. Some even follow the Federal formulas.
However, the way they arrive at these values and the computer methods for some states are very different from those of the Federal government. And, in some cases, the rates require three significant digits after the decimal, instead of two. Rather than invent new tables for these few states, we use the same format and labels for all.
Every special case has its own section devoted to it in this part of the manual. If your state is mentioned here, it means that CCIS Payroll needs specific entries in order to properly compute withholdings.
Be sure to look on the READ.ME file for other changes.
How to change state tax tables
To update the tax tables, you need to update the General Information, and the tax rate tables, if there are any. Remember to use Annual values.
To begin, load the tax table:
1. Choose Maintenance | Tax Tables from the Main Menu.
2. Select the State from the Jurisdiction.
3. Next, make any necessary changes to the General Information area:
4. Change the Effective Date field to reflect the effective date of the table. Change the other values as needed. Use your state supplied tax guides.
5. Now, change the Tax Rate Tables. There can be from zero to three tables. The number of
Table Buttons Likely name of source table
0 None No table
1 Married Rates Married Filing Joint
2 Married Rates
• Enter the ANNUAL values for each rate table in your state’s computer formula. Check your entries.
• Select OK when done
6. Select the Save button to save the changes.
Alabama
Employee types are different than those allowed for in our payroll. This is how to code an employee based on their Alabama A-4.
Employee claims "0”: enter 90 State dependents in the Payroll State. Enter their Marital Status claimed on AL form A-4 (see below). Note: entering 90 State Dependents uses the Standard Deduction values for Single (="S"), sets the Personal Exemption to $0 and the Dependent Deduction to $0.
Employee claims "S" or "MS", enter a marital status of Single.
Employee claims "H", enter Head of House.
Employee claims "M", enter Married.
Deductions: Formula is zero
Married Amount is the Personal Exemption for those claiming "M"
Single Amount is the Personal Exemption for those claiming "S" or "MS"
Head of House is the Personal Exemption for those claiming "H"
Exemptions: Formula is zero
Married Amount is the value per Dependent for low-income earners Single Amount is the value per Dependent for middle-income earners.
Dependent Amount is the value per Dependent for high-income earners.
Tax Tables: The Tax Tables have one more row than those published by Alabama. This row is used in the calculation of the Standard Deduction.
For this row only, the value in the Over column is the highest amount of wages that qualify for the maximum Standard Deduction.
The value in the Not Over column is the wage value where the Standard Deduction reaches its minimum value.
The value in the Base Tax is the maximum Standard Deduction for that class of employee (0, M, MS, H or S).
The Standard Deduction is reduced in steps of $500. The value in the Rate% column is 1/10th of the step reduction value. ($25.00 = 2.50, $135.00 = 13.50, $175.00 = 17.50 for 2007)
Arizona
There are two statutory minimum withholding rates. To cover the rate break, we have created a two-line tax table. Remember that optional tax rates go into Locality #1 in the Employee Master file.
California
Enter the deduction for Married claiming 0 or 1 exemption in the Deductions area using the $ Limit field.
The Low-Income exemption earnings limits go into the Taxes area. Enter the ANNUAL low-income values under Low-Married or Low-Single as appropriate.
CCIS Payroll does not handle Estimated Deductions from Table 2.
Connecticut
Connecticut uses a wage-bracket table to determine a gross tax based on annualized taxable income.
Taxable income is determined by deducting an exemption value from one of four tables, A, B, C, and D. The tables equate to a filing status as claimed by the employee on his CT-4.
Applying a credit from one of three tables reduces the gross tax. The tables are structured as wage-bracket tables. Follow these steps to modify the General Section:
The maximum annual exemption values are stored in the Deductions section. They are too large to fit in the fields so they are divided by 1,000 and stored as follows. Divide the maximum exemption by 1,000 and put the result:
• For TABLE A in the Single field.
• For TABLE B in the Head of House field.
• For TABLE C in the Married field.
• TABLE D has no exemption.
Each of the credit tables decreases by a constant amount. This constant is stored in the Exemptions section in the Dependent Amount field.
In the Taxes section:
1. The Formula Number is 0.
2. The Number of Tables is 3.
3. The Entries per Table is the sum of the number of entries in the Credit Table and the number of entries in the Tax Table plus 1.
4. Each of the Rate Tables combines the Credit table and the Gross Income tax table for the applicable Status. A Rate Table begins with the Credit rates. These end with 999999 in the Not Over column.
5. Next is a line with every entry equal to zero.
6. The Gross Tax table values complete the entries.
7. For Credit Table purposes, use Married filing Joint for Status A, Single for Status B, and Head of House for Status C.
8. For Gross Tax Table purposes, the Married Filing Joint table applies for CT Status A and D, the Single table applies for Status B, and the Head of Household table applies for Status C.
The following example shows Table A from the 1999 CT Tax Table.
How to complete these Rate Tables For the Credit Table:
1. The low end of the bracket goes into the Over column.
2. The high end of the bracket goes into the Not Over column.
3. The Base Tax holds the number of points that the credit percent decreases per $500.
4. The Rate% contains the credit percent.
5. The separator portion is one row with all-zero values.
6. The Tax Table portion is a standard wage-bracket table.
7. Reduced withholding is not supported.
Delaware
These are the special entries for Delaware.
In the Deductions area:
1. Married Amount is the Delaware Standard Deduction for Married filing jointly.
2. Single Amount is the Delaware Standard Deduction for individuals.
3. Head of House is the Delaware Standard Deduction for Married filing separately.
In the Credits area Dependent Amount is the credit allowed for each Federal exemption claimed.
Louisiana
These are the special entries for Louisiana.
In the Exemptions area:
1. The Formula Number is 0.
2. Enter the Base Tax Rate in the Married Amount field.
3. Enter the Supplemental Tax Rate in the Single Amount field.
4. Enter the value of one (1) Personal Exemption in the Dependant Amount field.
In the Credits area:
1. The Formula Number is 7.
2. Enter the Base Tax Rate in the Married Amount field.
3. Enter the Supplemental Tax Rate in the Single Amount field.
4. Enter the value of one (1) Dependency Credit in the Dependant Amount field.
In the Taxes area, we have constructed three tax tables that are used to determine the taxes.
• The tax values for those claiming zero (0) exemptions are in the SINGLE table.
• The tax values for those claiming one (1) exemption are in the HEAD OF HOUSE table.
• The tax values for those claiming two (2) exemptions are in the MARRIED table.
1. Using the M1 and M2 values and applying the published formula determines the values in the Base Tax column.
2. The M1 value is in the Not Over column of row 1, and the Over column of row 2.
3. The M2 value is in the Not Over column of row 2 and the Over column of row 3.
4. The basic tax PERCENTAGE is shown under Rate% in row 1.
5. Add the Base Tax and the Supplemental tax and put it in Rate% of row 2.
6. Add another Supplemental Tax to the value in Rate% of row 2 and put it in Rate% in row 3.
Maryland
Maryland has two standard deductions, each with minimum and maximum values. Here are the special entries in the General Information area.
Section of Table Field name Field Value
Deductions Deduct based on Gross Checked.
Deductions Percent The Standard Deduction percentage.
Deductions $ Limit The minimum Standard Deduction for
Married employees.
Deductions Married Amount The maximum Standard Deduction for Married employees.
Deductions Single Amount The maximum Standard Deduction for
Single employee.
Deductions Head of House The minimum Standard Deduction for
Single employees.
Exemptions Dependent Amount The value of one exemption for State Tax purposes.
Taxes Number of Tables 1
Most residents of Maryland are subject to both a state and a local withholding. The local tax rate is added to the state tax rate. The local tax rate varies by locality. (The local tax used to be a percentage of the state withholding.)
For example, for an employee who is subject to a 2.91% local tax, the MD tax table rates become 4.91%, 5.91%, 6.91%, and 7.76%. These changes are applied programmatically to the Nonresident Percentage Method table by CCIS Payroll using the Locality #1 rate stored here in the Employee Master record.
The Married filing Joint table holds the rates for percentage method calculation of Nonresident Maryland state tax.
Massachusetts
Here are the special entries for Massachusetts.
Massachusetts exempts FICA contributions to a specified maximum. Put the maximum FICA deduction into the Deductions area under $ Limit field.
In the Exemptions area:
1. Put the added exemption for single taxpayers into the Single Amount field.
2. Put the added exemption for married taxpayers into the Married Amount field.
CCIS Payroll also does not automatically add one dependent to married employees. If a married employee wants to claim the married exemption, enter the spouse as rwo dependents in the Federal and State Taxes tab of the employee's Master Record.
The mysterious self-increasing tax…
Every fall, we receive many calls from Massachusetts users with the same problem. The state tax for a salaried person whose salary never changes is suddenly more than it used to be. Why?
A: MA exempts FICA contributions to a specified maximum amount. When an employee's FICA withholdings for the year exceed the value that Massachusetts exempts, there is no more exemption and the State tax increases.
Mississippi
There are two non-standard entries in the Mississippi tax tables. Both are in the General Section.
First, Mississippi now exempts the first 11,000 of married income. The field is too small to hold this number so you need to enter 1/10 the amount. Here’s how:
1. In the Exemptions area, enter 1/10 of the exemption for Married taxpayers in the Married Amount field.
2. In the Exemptions area, enter 1/10 of the exemption for Single taxpayers in the Single Amount field.
3. Next, Mississippi requires whole-dollar withholding. The Whole dollar withholding checkbox must be checked.
Missouri
Here are the special entries for Missouri.
Section of Table Field name Field Value Deductions Deduct Federal W/H Checked.
Deductions $ Limit
The maximum annual Federal Income Tax that may be deducted by SINGLE people. The program will double this when processing married people.
Deductions Married Amount The Standard Deduction for Married taxpayers.
Deductions Single Amount The Standard Deduction for Single taxpayers.
New Jersey
New Jersey publishes five withholding rate tables labeled A through E. CCIS Payroll supports any three. Our standard New Jersey Tax Table contains the following three rate tables:
1. Married filing Joint is New Jersey Rate Table B.
2. Single is New Jersey Rate Table A.
3. Head of House is New Jersey Rate Table C.
4. In the Disability section, enter the combined employee rate into the Disability Rate % field
New York
The Rate% columns in each Tax Rate Table are ten times the published value. 3% = 30.00
North Carolina
The amount of exemption that may be claimed for dependents is reduced whenever a taxpayer's annual income exceeds a given threshold. There are special entries in the sections labeled EXEMPTIONS and CREDITS to implement these rules.
Section of
Enter the amount that can be claimed by taxpayers whose income is below the threshold.
Exemptions
Married Amou nt
Enter the amount that can be claimed by taxpayers whose income is at or over the threshold.
Enter the NC threshold for Head of Household Divided by 1000.
For example, if the threshold is $80,000 enter $80,000 / 1000 = 80.
Credits
Married Amou nt
Enter the NC threshold for taxpayers claiming Married filing Jointly divided by 1000.
Credits
Single Amou nt
Enter the NC threshold for Single Taxpayers divided by 1000.
Ohio
The Rate% columns in each Tax Rate Table are ten times the published value. 3% = 30.00
South Carolina
South Carolina has these special entries in the Deductions area:
1. The Married Amount field contains the maximum standard deduction if two or more dependents are claimed.
2. The Single Amount field contains the maximum if 1 dependent is claimed.
Utah
The calculation of Utah withholding has changed, beginning Jan. 1, 2008. The Utah Legislature amended the manner in which Utah income taxes are calculated, eliminating many deductions and personal exemptions, and reducing the tax rate to a single 5% rate with a taxpayer credit for personal exemptions and the standard or itemized deductions. As a result, withholding schedules and tables have been adjusted, effective for 2008.
(Copied from Utah Publication 14 – 2008)
The Flat tax goes into the Flat Tax Rate as a percentage
The Married and Single tables contain one row each. This row determines the reduction of the taxpayer credit as follows:
Over The threshold for beginning credit reduction Not Over Always enter 999999
Base Tax Enter the Base Allowance
Rate% Enter the Credit Reduction Rate as a percent.
Wisconsin
The Rate% columns in each Tax Rate Table are ten times the published value. 3% = 30.00