PR-F  Maintain Tax Tables

Purpose of Program

Use this program to enter or maintain a set of tax tables for the states that have an income tax and for federal taxes.  An updated set of state tax tables is provided that includes various state tables, with separate records for single, married, and single head of household status each December for the following year and updates are provided as needed during the year as states or the federal government release changes to the withholding amounts.  Some states have payroll withholding calculations that are not well suited to a table so the logic is embedded within the calculations in PR-B  Enter Pay Info or is a combination of the tables and the program.  If yours is such a state, then you need to be sure you install the most updated version of the payroll programs as well as the tax tables each year.  A list of states and whether the calculation is in the table or the program or both is provided at Payroll Tax Calculation by State.  Regardless of how you get the updates to the tax rates, the FICA and Medicare rates and limits are stored in the Payroll Division file and must be updated by the user in PR-M  Payroll Defaults.

Field Explanations

Tax code

A 3 character alphanumeric field which usually designates the state and marital status for the table.  For example, WVS represents West Virginia Single tax rates.  Federal tax tables are stored under USO, USM and USS.

Description

The tax description of the contents of the tax table.

PAY AMOUNT FIELDS

From

The lower limit of a tax bracket.

To

The upper limit of a tax bracket.

TAX WITHHOLDING FIELDS

Tax Amount

The minimum tax for a tax bracket.

Plus Column

The extra percentage of income to be added to the minimum tax in order to increase the tax evenly within a tax bracket.

Excess over column

The lower limit for calculation of the percentage tax.  This is the same amount displayed in the From field.

General Program Operation

Before using these tables, verify that the one(s) you need to use reflect the current tax structure of your state.  Much of the actual tax calculation occurs within the PR-B  Enter Pay Info program; if there are inaccuracies, you may need a software update.  If so, contact IS Tech Support at 866-516-3282.  See Payroll Tax Calculation by State to determine whether your state is controlled by the tables, the program, or both.

This program only needs to be used when and if tax changes occur.  If these changes affect the amounts only and not the internal calculations, you can adjust these amounts within this program.  Check the screen display against your most recent state tax tables to see if the tax amounts are correct.  These tables are associated with fields in PR-A  Enter Employees, and PR-B  Enter Pay Info, based on the State field entry in PR-M  Payroll Defaults.