TAX TABLE Entry/Edit Form

The TAX TABLE Entry/Edit Form allows you to View, Add, Edit, or Delete TAX TABLES..

This form is accessed by clicking on Codes in the Home Menu and then Tax Tables in the Codes & Maintenance Menu.

As depicted above, the active COMPANY is "The xyz company #99". The user is viewing the Federal Tax Table.

Note: This form contains controls with predefined labels and validation routines. However, these controls may be configured to conform to your specific "Business Rules." See Validation Methods for more information on customizing controls.

See The Mouse verses the Enter/Tab Keys for information on moving through a form.

See Importing Data for information on importing initial data.

A TAX TABLE is a collection of data that is used in the calculation of Federal, State, and/or Local withholding taxes.

TAX TABLE Maintenance:

To Add a new TAX TABLE:

1. Select Maintenance|TAX TABLE from top menu bar or go to the Home Menu, click the "Codes" button, and then "TAX TABLE" button on the Codes Menu.

2. Click ADD on the SIDE TOOLBAR or on the top TOOLBAR.

3. Complete the form as described below. After the last Entry is completed, the record will be saved automatically.

To Edit an existing TAX TABLE:

1. Select Maintenance|TAX TABLE from top menu bar or go to the Home Menu, click the "Codes" button, and then "TAX TABLE" button on the Codes Menu.

2. Use the RECORD buttons to locate a particular TAX TABLE or select the TAX TABLE from the LIST control in the upper portion of the Form.

3. Complete any changes needed as described below. Tabbing past the last entry, moving records or clicking ADD or OK on one of the TOOLBARS will validate and save your changes.

To Delete an existing TAX TABLE:

1. Select Maintenance|TAX TABLE from top menu bar or go to the Home Menu, Click the "Codes" button, then "TAX TABLE" button on the Codes Menu

2. Use the RECORD buttons to locate a particular TAX TABLE or select the TAX TABLE from the LIST control in the upper portion of the Form.

3. Click the DELETE button on the SIDE TOOLBAR or button on the Top Toolbar.

See Edit Modes for more information on the Edit modes used by most CCS forms.

The Controls of the TAX TABLE Form:

Note: The values shown below in square brackets represent the default range applicable to each control; however, these ranges can be configured to allow additional values (or restrict values). See Validation Methods for more information.

AUTHORITY:[F,S,L]

The AUTHORITY identifies a tax table as being either <F>federal, <S>tate, or <L>ocal. CCS Payroll ships with a Federal Tax Table already set up. If your location requires State and/or Local tax withholding, you must set up your own table.

ID:[3 alphanumeric characters]

ID is a unique identifier for a Tax Table. Enter "00" for Federal Tables; use any unique identifier for a local or state table when you first create it. For example, a Wisconsin tax table could be entered using an ID of "WI", "01", or any other combination of alphanumeric characters.

TABLE DESCRIPTION:[1 to 25 alphanumeric characters]

Use a descriptive phrase of your choosing to name any Tax Table that you create.

TAXPAYER ID:[10 alphanumeric characters]

Enter the company's Taxpayer ID.

TABLE TYPE:[Combo Box choice]

This control determines what fields are displayed and how they interact. It exists to allow for the complexities of various state and local tax requirements. The choices are as follows:

  1. (Standard): The correct choice for Federal and for most State Tables.
  2. (Credit): Applies only to CT.
  3. (Standard/-Fed.): A standard table, but the amount of Federal withholding on the paycheck is annualized, then subtracted from the gross annual wages before taxes are calculated. Applies to OR, IA, and MO.
  4. (% of Federal): A table for calculations that are based on the percentage of Federal withholding on the same paycheck. Applies to AZ.
  5. (Standard/-FICA): Same as Type 3 except FICA is subtracted before Federal withholding. Applies to MA.
  6. (Standard Ded. is %): Standard table, except the standard deduction is a percentage instead of a dollar amount. Applies to OK and SC.
  7. (Type 3 But Std. Ded. is %): Same as Type 4 except the standard deduction is a percentage, not a dollar amount.
  8. This is an accumulation type table. Each tax line item is summed with the preceeding tax bracket calculation until the annual taxable wages are less than the "On earnings over" column.
  9. This is a special accumulation table where the reductions (exemptions) are not used to determine which tax brackets are calculated, but instead are considered only after each tax line is calculated. This table is currently used for Louisiana only. Please see the LA Withholding tables and instructions booklet for further information on this type of table.

ROUND:[Checked or Unchecked]

Immediately above the Tax Type combo box is a check box for rounding. If this box is checked, everything will be rounded to the nearest dollar.

PRE-CALC. ALLOWANCE:[0-9999999.99]

Enter the Annual Withholding Allowance (regardless of your payroll period) for this tax table. (The Withholding Allowance is the annual deduction allowed per dependent.) This value can be found in the IRS Employers Tax guide or in your state/local tax guides.

LIMIT:[0-9999999.99]

Enter the maximum tax amount that can be deducted per employee per year, if applicable. For the Federal Tax Tables, this value should always be zero.

G/L ACCOUNT:[000000-999999]

If you will be interfacing your payroll system with the CCS General Ledger, then enter the G/L liability account that this Tax Table will affect.

SINGLE AND MARRIED TABS:

Single/Married Tax Rates: Complete each row as instructed in the IRS Employers Tax guide or in your state/local tax guides. As depicted above, Single withholding will be calculated as follows:

  1. Line 1: If the annual salary is greater than $2,650 but less than $28,700 (see Line 2), then withhold 15%.
  2. Line 2: If the annual salary is greater than $28,700 but less than $62,200 (see Line 3), then withhold $3,907.50 plus 28% of all earnings that fall within the range of $28,700 - $62,200.
  3. The remaining lines function similarly.

The only difference between the Single Tab and the Married Tab is the values in each of the cells.

AMOUNT:[000000-999999]

Enter the base ANNUAL amount for this line. This value can be found in the IRS Employers Tax guide or in your state/local tax guides.

PERCENT:[Real Value]

Enter the percentage that will be deducted on excess over the limit (next column). This value can be found in the IRS Employers Tax guide, or in your state/local tax guides.

ON EARNINGS OVER:[Real Value]

Enter the "on excess over" value from the ANNUAL Tax Tables. This value can be found in the IRS Employers Tax guide, or in your state/local tax guides.

Single Advance EIC Rates:

Complete each row as instructed in the IRS Employers Tax guide or in your state/local tax guides. As depicted above, Single Advance EIC will be calculated as follows: (This illustration is for the tax year 2003)

  1. Line 1: If the annual salary is less than or equal to $7,490, the employee will receive 20.4% Earned Income Credit from the Federal government.
  2. Line 2: If the annual salary is greater than $7,490 but less than $13,730, the employee will receive $1,457 Earned Income Credit from the Federal government.
  3. Line 3: If the annual salary is greater than $13,730, the employee will receive $1,457 less 9.588% of applicable income over $13,730 as Earned Income Credit from the Federal government.

The only difference between the Single Tab and the Married Tab is the values in each of the cells. Consult your IRS Employers Tax guide or in your state/local tax guides for EIC qualifying information.

NOTE: Advanced EIC Rates only applies to the Federal Tax Table. When you are working with a State or Local Tax Table, the caption for Single Advance EIC Rates changes to "Withholding Continued" (see picture below). A Federal tax return requires seven lines for withholding, as captioned in the form (Line 1 . . . Line 7). However, a State or Local tax return can have up to ten lines for withholding: the extra three lines used for EIC Rates at the Federal level function as additional withholding lines at a non-Federal level if the controls in these lines contain values. The picture below shows a Tax Table for New York State, which requires an eighth line for withholding:

AMOUNT:[000000-999999]

Enter the base ANNUAL amount for this line. This value can be found in the IRS Employers Tax guide., or in your state/local tax guides.

PERCENT:[Real Value]

Enter the percentage that will be deducted on excess over the limit (next column). This value can be found in the IRS Employers Tax guide, or in your state/local tax guides.

ON EARNINGS OVER:[Real Value]

Enter the "on excess over" value from the ANNUAL Tax Tables. This value can be found in the IRS Employers Tax guide, or in your state/local tax guides.

SINGLE PRE-DEDUCTION MINIMUM:[Real Value]

Enter the minimum pre-deduct (standard deduction). This amount is the minimum amount subtracted from the employee's annual gross wages to arrive at taxable wages. (This is generally only used by state and local tables.)

SINGLE PRE-DEDUCTION PER ALLOWANCE:[Real Value]

Enter the per allowance (claimed on a W-4 for example) pre-deduct (standard deduction). This product (allowances times this entry) is subtracted from the gross wages to arrive at taxable wages. (This is generally only used by state and local tables.)

NOTE: Some states have multiple levels for deductions. Illinois, for example, has a $2,000 and a $1,000 deduction. To automate the proper deduction, find a common denominator. In Illinois, for example, you would put $1,000 as the Single Pre-Deduction Per Allowance figure. Then, if an Illinois employee claimed two deductions at the $2,000 level and one deduction at the $1,000 level, you would simply give him/her five deductions @ $1,000.

SINGLE PRE-DEDUCTION MAXIMUM:[Real Value]

Enter the maximum pre-deduct (standard deduction). This amount is the maximum amount subtracted from the employee's annual gross wages to arrive at taxable wages. (This is generally only used by state and local tables.)

POST-CALC. ALLOWANCE:[Real Value]

Enter the dollar amount per exemption that will subtracted directly from the tax to withheld. This product is subtracted after the tax is calculated. (This is generally only used by state and local tables.)

Pre-Post Tax Example: Some states allow for pre- and post-calculation exemptions to be specified. Using California as an example, here is how you would set up the Employee record. We are taking our example from the California Withholding Schedules for 2002, Method B - Exact Calculation Method:

Employee Joe J. Brown is married and earns $950 biweekly. He is claiming three withholding allowances, one of which is for estimated deductions. His Employee record, Rates Tab would be set up as follows:

Notice that the State Table control contains the entry "CA." This is because Company 99 has defined a State Tax Table for California and given it an ID of "CA." Entering "CA" into his State Tax Table ties him to the proper state tax table. Since one of his deductions is estimated, a "1" is entered in his State # Exempt Pre control. A "2" is entered into his State # Exempt Post control representing his remaining deductions.

Note: CA employees, should be setup using the "Pre" exempt column in the employee file to represent the "Estimated Deduction" (Table 2), entered on their DE-4, the "Post" allowance, is then used to calculate the standard deductions and exemptions allowances (Table 3 and 4) . If the employee does not enter a value for the "Estimated deduction" (or fill out a DE-4) then enter 0 in the "Pre" exempt column.

Note: AL employees, should be setup using the "Pre" exempt column in the employee file to represent the number of dependents they entered on Line 3 of their A-4, the "Post" allowance, is used to calculate the standard deductions (20% of Gross) and personal exemption allowance (Line 1 and Line 2) . If the employee does not enter a value for the Line 3 on the A-4, then enter 0 in the "Pre" exempt column. An Alabama employee entering "0" for Line 1B of the A-4 must use the state Table "AL0" not "AL". All others (Single, Married and Head of Household will use the standard table "AL")

 

Note: Indiana Employers:

Pre (Table A) is used to figure personal exemptions. Each employee is entitled to deduct one thousand dollars ($1,000 for 2004) per year per exemption claimed on line 4 of his/her Form WH-4. Personal exemptions include additional exemptions if you or your spouse are age 65 or older and/or blind.

Post (Table B) is used to calculate dependent exemptions. Each employee is entitled to deduct one thousand five hundred dollars ($1,500 for 2004) per year per qualifying dependent exemption claimed on line 5 of his/her Form WH-4.

 

Note: Louisiana Employers:

"Pre" is used to calculate the dependent exemptions. (Louisiana form L-4 line 7)

"Post" is used to calculate the withholding personal exemptions (Louisiana form L-4 line 6) enter a 0, 1 or 2 -- If 2 is chosen, please be sure to select the married table.

 

Note: Illinois Employers:

"Pre" is used to calculate the dependent exemptions. (IL-W-4 form L-4 line 2)

"Post" is used to calculate the withholding personal exemptions (IL-W-4 line 1) enter a 0, 1 or 2 -- If 2 is chosen, please be sure to select the married table.

 

Keeping in mind that all of the CCS Tax Rates are annualized, his annual salary would be $950 X 26 = $24,700. Looking at the Married Tab (not pictured above), we see that his salary falls into the Married Tax Rates Line 2. Here are the steps to calculate his annual tax (all of which are handled automatically by the CCS Payroll Program):

Biweekly earnings
$950
Pre-Calc. Allowance ($1000 / 26) (from California's Estimated deduction table)
-38
Earnings subject to withholding
$912
Via the Standard Deduction Table ($5920/26)
-228
Taxable Income
$684
Tax Rate Level 2 (.02 X ($684 - 444)
$4.80
Plus Marginal Amount
+4.44
Computed Tax
$9.24
Minus Post-Calc. Allowance. ($79 * 2 / 26) (from California's Exemption allowance table)
-6.08
Net amount of tax to be withheld (This calculated amount will be entered for you automatically into Joe Browns paycheck during the creation of his paycheck.) These calculations will of course happen week after week, once you have setup the Tax table, you need not care how the figures where calculated.
$3.16

NOTE: CCS-defined Deduction Codes for withholding tax (E/D Codes 95, 96, and 97) have special functionality. For details, click here.

SUB-TABLE:[7 alpha-numeric characters]:

Enter sub-tables that are to be calculated prior to this table, which we will call the main table. As of this writing, sub-tables are used only by OK, CA and AL. OK contains the following: "PC1 + EC1". PC1 and EC1 are sub-tables. Prior to calculation of the main table, PC1 is loaded and calculated. The amount of tax derived from this calculated is subtraced from (If no plus or minus sign preceeds the 1st table, then it is assumed to be subtracted from) the gross taxable wages that will be used in the tax calculation of the the main table. Once PC1 and the main table are calculated, EC1 is then loaded and calculated. The amount of tax derived from this calculation is then added to the total calculated tax (derived from PC1 and the main table) not the Gross taxable wages. If the entry had been "PC1 - EC1", then the calculated tax from EC1 would have been subtracted from tax calculation of PC1 and the main table.

For Alabama (AL) the entry of (PC2+PC3) has been used. The values enclosed in parenthesis causes all the amounts of the two tables (or more if present) to be combined and subtracted from the Annual Gross Taxable wages prior to the calculation of the main table. Basically, tables combined in parenthesis cause all of the calculations to be summed, then used as one value, for either the pretax (change in gross taxable wages) or post tax (added to or subtracted from the calculated tax itself.) calculation. . If the parenthesis where not used, then PC2 would have been subtracted from the Gross wages (Since no plus sign was present), then after the main table calculation, PC3 would have been calculated and added (since a plus sign was present) to the final tax amount.

The California tables includes a Sub table of *PC5 -- the leading asterisk indicates that this is a low income table. If the the resultant tax calculations of PC5 are less than zero, than the tax calculation logic will stop, and no taxes will be withheld.

After you complete the above entry, the TAX TABLE will automatically be validated and saved. Click OK on the SIDE TOOLBAR when you are ready to close the TAX TABLE form.

Note: If you used the Add mode and not the Define mode to create a TAX TABLE, you will need to press the ESC key or click CANCEL when you are done adding TAX TABLES. This is necessary because, once you start the ADD mode anywhere in the CCS Programs, this mode is automatically reinstated for you after each save until you cancel it or close the Form.