Define Withholding Tax (U.S.)

Objective

The Define Withholding Tax (U.S.) option is used to configure the necessary information in order to calculate, federal tax, insurance and contributions for each state.

The values entered must be from the employer's guide provided by the IRS (Internal Revenue Service) for federal taxes and the tax guides provided by the various states. At a minimum, you must configure deductions for federal taxes and deductions for one state so that the system can calculate an employee's pay.

 

PREREQUISITEs

• Chart of Accounts

 

Summary

• Create a Withholding Tax Applicable at Federal Level
• Create a Withholding Tax Applicable at State Level
• Appendix
  • Exporting Rates
  • Importing Rates
  • Update the Rates

 

Steps

To access a specific state, click on the hyperlink:

• Alabama
• California
• Colorado
• Illinois
• Louisiana
• Maine
• Massachusetts
• New York
• Oregon
• South Carolina
• Vermont

New Hampshire, Tennessee, Texas and Washington are also supported by maestro* but there are no taxes to calculate for these states.

 

Create a Withholding Tax Applicable at Federal Level

1. Enter the required information in the Detail section:

Field	Description
Federal	Tells maestro* that this is a federal deduction, if selected.
Effective Date	Effective date of the rates.
Description	Description of the withholding.

2. Enter the required information in the Federal tab:

When saving, certain fields, such as the Employer ID and Remittance Accounts are locked and displayed in blue. These are considered static fields and they are never updated when rates are imported or updated. To change any of these values, click the Unlock Secured Information icon. The rates must be entered as a percentage in the following format: 4.2% = 4,200.

 

Field	Description
Employer ID Number (EIN)	Employer number for federal taxes. NOTE: In multidimensional mode, you can enter a different number for each paying company by clicking the search button and leaving the employer number field blank.
Federal Remittance Account	General ledger liability account to which federal income tax remittances are posted.
Deduction Amount Allocated	Amount of deduction allocated to be deducted from the employee's pay.
Round Withholding	Rounds the amount of federal withholding withheld to the nearest dollar, if checked. NOTE: Rounding of amounts is not necessary, but it is permitted by federal law.

1. FICA – Federal Income Contributions Act section:

Field	Description
Social Security	Contribution to be deducted for social security. Available fields: Remittance Account General ledger accounts to which FICA – Federal Income Contributions Act remittances are posted. Employee Rate Employee rate for calculating the contribution to Social Security. Employer Rate Employer rate for calculating the employer's share of the contribution to social security. Wage Limit Amount of the maximum wage limit to calculate the contribution to Social Security.
Medicare	Contribution to be deducted for the Medicare program. Available fields: Remittance Account General ledger account to which Medicare remittances are posted. Employee Rate Employee's contribution rate applicable to Medicare. Employer Rate Employer's contribution rate applicable to Medicare. Wage Limit Amount of the maximum wage limit to calculate the contribution to the Medicare program. NOTE: Leave the field blank if no annual maximum is applicable.

2. FUTA – Federal Unemployment Act section:

If a rate is specified, the remittance account is mandatory.

 

Field

Description

FUTA

Contribution to be deducted for Unemployment Insurance. Available fields: Remittance Account General ledger account to which Unemployment Insurance remittances are posted. Employer Rate Contribution rate paid by the employer to Unemployment Insurance. NOTE: When the payroll is calculated, the rate used for the FUTA contribution is determined based on the following formula: FUTA rate - (FUTA rate credit - Credit reduction rate). NOTE: The rate of credit reduction is specified in the withholding tax of the state. Wage Limit Amount of the maximum annual wage to calculate the contribution to Unemployment Insurance. Credit Unemployment insurance rate credit.

3. Special Tax Rate section:

This section is used to define two supplemental fixed rates for taxing income (i.e. Bonus, Commission, etc.) at a tax rate different from the regular rate in the tax table. For more information, refer to the government sites and consult the sections on types of income taxed at specific rates.

IMPORTANT! To calculate a bonus amount with a different tax rate, you must use a bonus defined in Define Earning/Deduction Codes. This bonus must affect state income tax and/or federal income tax based on whether Supplemental Rate or Supplemental Rate 2 is used.

 

If no rate is entered and the tax is calculated based on the supplemental rate, no tax will be deducted from the pay.

4. Income Tax Table section:

This section is where you enter the table for calculating the federal income tax based on the filing status. To enter the values from the income tax table, select the Filing status and complete the table.

Field	Description
Filing Status	Indicates the filing status of the person for whom the income tax table is being used. Columns: Amount Over Used for entering the starting amount to determine the amount to be deducted. But Not Over Indicates the maximum amount for which the amount to be deducted should be applied. NOTE: When you enter the Amount Over, maestro* automatically completes the But Not Over column. Amount to Withhold Amount to be withheld from the pay. Plus Percentage applicable to the amount exceeding the Amount over.
Personal Exemption Amount	Allows to note the personal exemption amount by civil status.
W4 2019 or W4 2020 if two jobs is checked	Displays the tax tables of the old W4 form or the W4 2020 form if the Two Jobs box is checked.
W4 2020 if two jobs is not checked	Displays the tax tables of the W4 2020 form if the Two Jobs box is not checked.

3. Click Save.

 

Create a Withholding Tax Applicable at State Level

1. Enter the required information in the Detail section:

Field	Description
State	Specifies that the source deduction applies to a state.
State Name	Used to select the state for which the user wants to enter income tax rates. NOTE: If the user selects a state that is not supported by maestro*, the following message will be displayed: This State is not currently supported by maestro*. In order to calculate the payroll for an employee who works in this State, you can temporarily select the State’s model for the calculation of withholding tax. In this case, the user must select the state serving as State model for the tax calculation, from a list of supported states. The user must then complete the applicable configurations (Effective Date, rates, income tax tables, etc...)
State’s Model	Select the state serving as the State’s model for the calculation of withholding taxes. NOTE: Maestro* displays the following message: Do you want to copy the current rates for State XXXX? You will then be able to modify them. If the user clicks Yes, the tabs and the rate for the State’s model are copied and modifiable. If the user clicks No, only the tabs and the values from the State’s model are entered in the screen to be completed and no rates are copied. NOTE: This field is only visible when a non-supported state is selected.
Description	Description of the source deduction.
Effective Date	Effective date after which source deductions must be applied.

2. Enter the required information in the General tab:

When saving, certain fields such as the State Tax Registration Number and State Remittance Accounts, these fields are then locked and displayed in blue. These are considered static fields and they are never updated when rates are imported. To change any of these values, click the Unlock Secured Information icon. The rates must be entered as a percentage in the following format: 4.2% = 4,200. For New Hampshire, Texas and Washington, only the General tab must be completed, for the other states the user must complete the selected state’s tab.

 

Field	Description
State Tax Registration Number	Employer number for the selected state.
State Remittance Account	General ledger liability account to which state remittances are posted.
Round Withholding	Rounds the amount of state deductions withheld to the nearest dollar, if checked. NOTE: Rounding of amounts is not necessary, but it is permitted for certain states. Check with the state about rounding deductions.

1. Insurance section:

Field	Description
SUTA	Contribution to be deducted for SUTA (State Unemployment Tax Act) insurance. Fields available: Remittance Account General ledger account to which SUTA insurance remittances are posted. Employee Rate Employee's contribution rate applicable for SUTA insurance if the employee must make the contribution. Employer Rate Employer's contribution rate applicable for SUTA insurance. Wage Limit Amount of the wage limit to calculate the contribution to SUTA insurance.
FUTA Credit Reduction	Used to enter the FUTA credit reduction amount. NOTE: The amount of the credit reduction must be entered if a rate is specified on government form 940 (Schedule A, Form 940).
SDI	Contribution to be deducted for SDI (State Disability Insurance). NOTE: This contribution does not apply to all states. Check with the state to determine whether or not this contribution should be applied. Fields available: Remittance Account General ledger account to which SDI insurance remittances are posted. Employee Rate Employee's contribution rate applicable for SDI. Employer Rate Employer's contribution rate applicable for SDI. Wage Limit Amount of the maximum annual salary to calculate the contribution to SDI insurance.
Yearly Max.	Indicates that the salary amount is a yearly maximum.
Weekly Max.	Indicates that the salary amount is a weekly maximum.

2. Workers' Compensation Board (WCB) section:

All of the fields are static except for the rates. To change a static field, click the Unlock Secured Information icon.

 

Field	Description
Source	Source of the gross earnings for the calculation of the WCB. Available values: Province/State Takes the state gross salary. Federal Takes the federal gross salary. Max W/C Takes the salary (hours * hourly rate) on which the selected premiums are added Affect the WCB salary. NOTE: As per the state’s maximum WCB.
Remittance Account	General ledger account to which remittances to the Workers' Compensation Board (WCB) are posted.

 

The weekly and yearly maximum amounts applicate to the Commissions des accidents du travail (CAT) are displayed as informational. To modify or add an amount, click on the Define W/C – CSST icon and complete the Maximums tab applicable to the state.

1. Provision sub-section:

If a rate is specified, the remittance and provision accounts are mandatory.

Field	Description
Rate	WCB provision rate in %. If there is no rate, the field must be empty. NOTE: In multidimensional mode, you can enter a different provision rate for each paying company by clicking the search button and leaving the Rate field blank.
Remittance Account	General ledger account to which remittances to the Workers' Compensation Board (WCB) are posted.
Provision Account	General ledger account to which Workers' Compensation Board (WCB) provision remittances are posted. If there are no WCB provisions, the field must be blank.

3. Special Tax Rate section:

This section is used to define two supplemental fixed rates for taxing income (i.e. Bonus, Commission, etc.) at a tax rate different from the regular rate from the tax table. For more information, refer to the government sites and consult the sections on types of income taxed at specific rates.

To calculate a bonus amount with a different tax rate, you must use a bonus defined in Define Earning/Deduction Codes. This bonus must affect state income tax and/or federal income tax based on whether Supplemental Rate or Supplemental Rate 2 is used.

 

If no rate is entered and the tax is calculated based on the supplemental rate, no tax will be deducted from the pay.

4. Local Income Tax section:

This section lets you configure local income taxes based on the city/county applicable in certain states.

The local income tax is a flat rate based on the employee's salary.

To configure a local income tax, complete the following information:

Field	Description
City/County	Identify the city or county in which the local income tax should be deducted. NOTE: Cities or counties in which a tax should be calculated will be available in the City/County Name field in Employee Management, in the Income Tax tab.
Rate	Tax rate for calculating the local income tax.
Remittance Account	General ledger account to which the local income tax is posted.
Description on Stub	Description that identifies the local income tax on the employee's pay stub.

3. Enter the required information in the Name of the Selected State tab:

1. For the state of Alabama, complete the following fields:

1. Table by Filing Status section

This section is where the user enters the table for standard deductions, calculating income tax and the personal exemption amount, based on the filing status. To enter the different values, select the filing status and complete the required information.

Field	Description
Filing Status	Specifies the filing status to which the deductions and income tax calculation table apply. Available filing statuses include: Head of Household, Married, Married Separate, No Personal Exemption and Single.
Personal Exemption Amount	Applicable personal exemption amount based on the filing status.

1. Standard Deduction Table sub-section

Field	Description
Amount Over	Used to enter the starting amount for calculating the standard deduction based on the filing status.
But Not Over	Indicates the maximum amount for which the standard deduction should be applied. NOTE: When you enter the amount over to amount, maestro* automatically completes the But not Over column.
Deduction	Amount of the annual deduction.
Less	Amount to be deducted based on the Amount Greater Than and Lower Than scale.
Per	Amount that defines the bracket by which the amount of the deduction is calculated.

2. Income Tax Table sub-section

Field	Description
Amount Over	Used to enter the starting amount for calculating the state tax based on the filing status.
But Not Over	Indicates the maximum amount for which the standard deduction should be applied. NOTE: When you enter the Amount Over to amount, maestro* automatically completes the But Not Over column.
Rate	Percentage applicable to the surplus Amount Over.
Plus	Amount to be withheld from the pay. NOTE: For some states, the amount to be deducted is the sum of the rate, plus the amount entered in the Plus column.

2. Deduction for Dependent section

This table applies to all filing statuses.

 

Field	Description
Amount Over	Used to enter the deductions based on the table defined by the government.
But Not Over	Used to enter the deductions based on the table defined by the government.
Amount	Amount to be deducted for dependents.

3. Subtract Before / After Income Tax section

This section is used to specify whether the deductions or exemptions should be subtracted before or after the income tax is calculated. If checked before, the taxable income is the gross salary – the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered a tax credit.

For the state of Alabama, all of the amounts must be subtracted Before.

2. For the state of California, complete the following fields:

Field	Description
Personal exemption amount	Personal exemption amount applicable based on the filing status. NOTE: The personal exemption amount is applicable, regardless of the employee's filing status. The personal exemption amount is subtracted from the income tax calculation.
Estimated Deduction Amount	Amount to be multiplied by the number of additional credits identified in the Employee Management for the state of California. This amount will then be subtracted from the taxable income.

1. Table by Filing Status section

This section is where the user enters the table for standard deductions, the table for calculating the income tax and the Low Income Exemption Table, based on the filing status. To enter the different values, select the filing status and complete the required information.

Field	Description
Filing Status	Specifies the filing status to which the standard deductions, income tax calculation table and Low Income Exemption Table apply. Available filing statuses include: Head of Household, Married and Single.

1. Standard Deduction Table sub-section

The standard deduction must be subtracted from the taxable income before calculating the amount of tax to the state.

Field	Description
Allowance Over	Used to enter the minimum number of allowances to which the deduction amount applies. NOTE: The number of allowance entered in Employee Management for this status is used to determine the amount of the standard deduction to be deducted from the taxable income.
Amount	Annual amount of the deduction

2. Income Tax Calculation Table sub-section

Field	Description
Amount Over	Used to enter the starting amount for calculating the state tax based on the filing status.
But Not Over	Indicates the maximum amount for which the standard deduction should be applied. NOTE: When you enter the Amount Over to amount, maestro* automatically completes the But Not Over column.
Rate	Percentage applicable to the surplus Amount Higher Than.
Plus	Amount to be withheld from the pay.

3. Low Income Exemption Table section

Field	Description
Allowances Over	Used to enter the allowances Over to which the deduction amount applies. NOTE: The number of allowances entered in Employee Management for this status is used to determine the amount of the standard deduction to be deducted from taxable income.
Amount	Maximum amount the employee is exempt from tax.

2. ETT – Employment Training Tax section

This section is used to enter values to calculate the contributions paid by employers to the Employment Training Tax to improve the competitiveness of businesses.

Field	Description
Remittance Account	General ledger account to which ETT remittances are posted.
Employer Rate	Employer's contribution rate applicable for ETT.
Wage Limit	Amount of the wage limit to calculate the contribution to ETT.

3. Subtract Before / After Income Tax section

This section is used to specify whether the deductions or exemptions should be subtracted before or after the tax is calculated. If checked before, the taxable income is the gross salary – the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered a tax credit.

For the state of California, the standard deduction must be subtracted Before, but the personal exemption must be subtracted Afterwards.

3. For the state of Colorado, complete the following fields:

1. Table by Filing Status section

This section is where the user enters the table for standard deductions, the table for calculating the income tax, based on the filing status. To enter the different values, select the filing status and complete the required information.

Field	Description
Filing Status	Specifies the filing status to which the standard deductions, income tax calculation table and Low Income Exemption Table apply. Available filing statuses include: Married and Single.

1. Standard Deduction Table sub-section

Field	Description
Allowances Equal or Over	Used to enter the starting amount to calculate the standard deduction, by filing status. NOTE: The standard deduction applicable to an employee is selected in relation to the number of credits entered in the State section of the Withholding tab in Employee Management.
Amount	Annual amount for the deduction

2. Income Tax Table section

Field	Description
Amount Over	Used to enter the starting amount to calculate the state income tax, by filing status.
But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
Rate	Percentage applicable on the amount exceeding the Amount Over amount.

2. Subtract Before/After Income Tax section

This section allows user to identify if the deductions or exemptions must be subtracted before or after the calculation of the tax. If checked before, the taxable income will be the gross salary - the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered as a tax credit.

For the state of Colorado, the standard deduction must be subtracted Before. The personal exemption and the other deductions do not apply to this state.

4. For the state of Illinois, complete the following fields:

This section allows user to enter the amounts of personal exemption, additional amounts and the tax rate.

Field	Description
Personal Exemption Amount	Amount of personal exemption applicable for this state. NOTE: This amount will be multiplied by the number of credits entered in the State section of the Withholding tab in Employee Management.
Additional Exemption Amount	Amount of additional exemption applicable for this state. NOTE: This amount will be multiplied by the number of credits entered in the State section of the Withholding tab in Employee Management.
Tax rate	Rate of tax to be withheld for income tax.

1. Subtract Before/After Income Tax section

This section allows user to identify if the deductions or exemptions must be subtracted before or after the calculation of the tax. If checked before, the taxable income will be the gross salary - the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered as a tax credit.

For the state of Illinois, the personal exemption must be subtracted Before. The other deductions are not applicable to this state.

5. For the state of Louisiana, complete the following fields:

1. Table by Filing Status section

This section allows user to enter by filing status, the tax credit table and the amounts of personal exemption as well as for dependants. To enter the different values, select the filing status and complete the information as needed.

Field	Description
Filing Status	Specifies the filing status to which the standard deductions and income tax calculation table. Available filing statuses include: Married and Single.
Personal Exemption Amount	Amount of personal exemption applicable for this filing status. NOTE: This amount will be multiplied by the number of credits entered in the State section of the Withholding tab in Employee Management.
Amount for eligible dependents	Amount of exemption for dependents applicable for this filing status. NOTE: This amount will be multiplied by the number of dependents entered in the State section of the Withholding tab in Employee Management.

1. Income Tax Credits Table sub-section

Field	Description
Allowances Equal or Over	Used to enter the starting amount to calculate the income tax credit, by filing status. NOTE: This amount will be multiplied by the number of credits entered in the State section of the Withholding tab in Employee Management.
Amount Over	Used to enter the starting amount to calculate the income tax credit, by filing status.
But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
Rate	Percentage applicable on the amount exceeding the Amount Over amount.
Plus	Amount applicable to credit. NOTE: For certain states, the amount to retain is the sum of the rate + amount entered in the Plus column.

2. Income TaxTable sub-section

Field	Description
Allowances Equal or Over	Used to enter the starting amount to calculate the standard deduction, by filing status. NOTE: The standard deduction applicable to an employee is selected in relation to the number of credits entered in the State section of the Withholding tab in Employee Management.
Amount Over	Used to enter the starting amount to calculate the state income tax, by filing status.
But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
Rate	Percentage applicable on the amount exceeding the Amount Over amount.
Plus	Amount to retain on payroll. NOTE: For certain states, the amount to retain is the sum of the rate + amount entered in the Plus column.

2. Subtract Before/After Income Tax section

This section allows user to identify if the deductions or exemptions must be subtracted before or after the calculation of the tax. If checked before, the taxable income will be the gross salary - the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered as a tax credit.

For the state of Louisiana, the personal exemption must be subtracted After. The deduction for dependents must also be subtracted After. The other deductions are not applicable for this state.

6. For the state of Maine, complete the following fields:

1. Table by Filing Status section

This section is where the user enters the table for standard deductions, the table for calculating the income tax and the Low Income Exemption Table, based on the filing status. To enter the different values, select the filing status and complete the required information.

Field	Description
Filing Status	Specifies the filing status to which the standard deductions and income tax calculation table. Available filing statuses include: Married and Single.

1. Standard Deduction Table sub-section

The standard deduction must be subtracted from the taxable income before calculating the amount of tax for the state.

Field	Description
Allowances Equal or Over	Allows user to enter the minimum number of credits to which the amount of the deduction applies. NOTE: The number of credits entered in the Employee Management for this state will find the amount of the standard deduction to subtract from the taxable income.
Amount	Annual amount of the deduction

2. Income Tax Table section

Field	Description
Amount Over	Used to enter the starting amount to calculate the state income tax, by filing status.
But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
Rate	Percentage applicable on the amount exceeding the Amount Over amount.
Plus	Amount to retain on payroll.

2. Low Income Exemption Table section

Field	Description
Allowances Equal or Over	Used to enter the minimum number of credits to which the exemption applies. NOTE: The standard deduction applicable to an employee is selected in relation to the number of credits entered in the State section of the Withholding tab in Employee Management.
Amount	Maximum amount the employee is exempt from income tax.

3. Subtract Before/After Income Tax section

This section allows user to identify if the deductions or exemptions must be subtracted before or after the calculation of the tax. If checked before, the taxable income will be the gross salary - the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered as a tax credit.

For the state of Maine, the standard deduction must be subtracted Before. The personal exemption and additional deductions do not apply to this state.

7. For the state of Massachusetts, complete the following fields:

1. General Tables section

This section is where the user enters the table for standard deductions, the table for calculating the income tax and the Low Income Exemption Table.

1. Standard Deduction Table sub-section

The standard deduction must be subtracted from the taxable income before calculating the amount of tax for the state.

Field	Description
Allowances Equal or Over	Allows user to enter the minimum number of credits to which the amount of the deduction applies. NOTE: The standard deduction applicable to an employee is selected in relation to the number of credits entered in the State section of the Withholding tab in Employee Management. NOTE: The number of credits entered in the Employee Management for this state will find the amount of the standard deduction to subtract from the taxable income.
Amount	Annual amount of the deduction

2. Income Tax Table sub-section

Field	Description
Amount Over	Used to enter the starting amount to calculate the state income tax, by state.
But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
Rate	Percentage applicable on the amount exceeding the Amount Over amount.

3. Low Income Exemption Table sub-section

Field	Description
Allowances Equal or Over	Used to enter the minimum number of credits to which the exemption applies. NOTE: The standard deduction applicable to an employee is selected in relation to the number of credits entered in the State section of the Withholding tab in Employee Management.
Amount	Maximum amount the employee is exempt from income tax.

2. Exemption Table section

Field	Description
Filing Status	Indicates to which filing status the exemption is for. The available filing statuses are: Blind 1, Blind 2, Head of Household, Married and Single.
Amount	Maximum amount the employee is exempt from income tax.

3. Subtract Before/After Income Tax section

This section allows user to identify if the deductions or exemptions must be subtracted before or after the calculation of the tax. If checked before, the taxable income will be the gross salary - the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered as a tax credit.

For the state of Massachusetts, the standard deduction must be subtracted Before. The personal exemption and additional deductions do not apply to this state.

8. For the state of New York, complete the following fields:

1. Complete the fields in the New York State tab

Field	Description
Personal Exemption Amount	Amount of personal exemption applicable for this filing status. NOTE: This amount of personal exemption is applicable, regardless of the filing status of the employee. The amount of personal exemption in New York must be subtracted Before calculation of the income tax.

1. Table by Filing Status section

Field	Description
Filing Status	Specifies the filing status to which the standard deductions and income tax calculation table. Available filing statuses include: Married and Single.
Standard Deduction Amount	Enter the standard deduction amount

1. Income Tax Table sub-section

Field	Description
Amount Over	Used to enter the starting amount to calculate the state income tax, by filing status.
But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
Rate	Rate to use for income tax
Plus	Other amount to calculate for income tax

2. Subtract Before/After Income Tax section

This section allows user to identify if the deductions or exemptions must be subtracted before or after the calculation of the tax. If checked before, the taxable income will be the gross salary - the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered as a tax credit.

For the state of New York, the standard deduction must be subtracted Before. The personal exemption and additional deductions do not apply to this state.

2. Complete the fields in the New York City tab

Field	Description
Description on Stub	Displays the description that will appear on the pay stub
Remittance Account	Displays the remittance account number
Personal Exemption Amount	Amount of personal exemption applicable for this state

1. Table by Filing Status section

Field	Description
Filing Status	Specifies the filing status to which the standard deductions and income tax calculation table. Available filing statuses include: Married and Single.
Standard Deduction Amount	Enter the standard deduction amount

1. Income Tax Table sub-section

Field	Description
Amount Over	Used to enter the starting amount to calculate the state income tax, by filing status.
But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
Rate	Rate to use for income tax
Plus	Other amount to calculate for income tax

2. Special Tax Rate section

Field	Description
Supplemental Rate	Allows user to enter a supplemental rate
Supplemental Rate 2	Allows user to enter a second supplemental rate

3. Complete the fields in the Yonkers tab

1. Yonkers Resident section

Field	Description
Description on stub	Displays the description that will appear on the pay stub
Remittance Account	Displays the remittance account number
Personal Exemption Amount	Amount of personal exemption applicable for this state

2. Table by Filing Status section

Field	Description
Filing Status	Specifies the filing status to which the standard deductions and income tax calculation table. Available filing statuses include: Married and Single.
Standard Deduction Amount	Enter the standard deduction amount

1. Income Tax Table sub-section

Field	Description
Amount Over	Used to enter the starting amount to calculate the state income tax, by filing status.
But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
Rate	Rate to use for income tax
Plus Amount	Other amount to calculate for income tax.
Plus Rate	Allows user to enter an additional rate

3. Special Tax Rate section

This section allows the user to define two supplemental fixed rates for imposition to an income (example: Bonus, Commission, etc.) at a different income tax rate than the regular rate from the income tax table. For more information, refer to government sites and consult the information on the types of income taxed at a specific rate.

To calculate a bonus amount at a different taxable rate, it must use a premium defined in the Define Earning/Deduction Codes. This premium must affect the state tax and/or the federal tax depending on the choice of Supplemental Rate or Supplemental Rate 2.

If no rate is entered and the income tax is calculated based on a supplemental rate, no tax will be deducted on the payroll.

4. Yonkers Non-Resident section

Field	Description
Description On Stub	Displays the description that will appear on the pay stub
Remittance Account	Displays the remittance account number
Tax rate	Enter the tax rate

1. Exemption Table section

Amount Over	Used to enter the starting amount to calculate the state income tax, by filing status.
But Not Over	Indicates the limit amount for which the income tax table must be applied.
Exclusion amount	Amount of exclusion

9. For the state of Oregon, complete the following fields:

Field	Description
Personal exemption amount	Personal exemption amount applicable based on the employees status. NOTE: The personal exemption amount is applicable, regardless of the employee's filing status. The personal exemption amount for Oregon must be subtracted after the income tax calculation.

 

1. Table by Filing Status section

Field	Description
Filing Status	Specifies the filing status to which the standard deductions, federal income tax to be subtracted and income tax calculation table apply. Available marital statuses include: Married and Single.

1. Standard Deduction Table sub-section

The standard deduction must be subtracted from the taxable income before calculating the amount of tax to the state.

Field	Description
Allowances over	Used to enter the allowance over to which the deduction amount applies. NOTE: The number of allowances entered in EmployeeManagement for this status is used to determine the amount of the standard deduction to be deducted from taxable income.
Amount	Annual amount of the deduction

2. Federal Tax Withheld, not to exceed PHASE OUT sub-section

Field	Description
Allowances Over	Used to enter the allowances Over to which the tax amount to be subtracted applies.
Amount Over	Used to enter the starting amount for calculating the federal tax to be subtracted based on the filing status.
But Not Over	Indicates the maximum amount for which the federal income tax to be subtracted must be applied.
Phase Out	Annual federal income tax that can be subtracted from the taxable income to calculate the state tax.

3. Income Tax Table sub-section

Field	Description
Wages Over	Used to enter a salary scale to which the income tax table applies.
Allowances Over	Used to enter the allowances Over to which the tax amount to be subtracted applies.
Amount Over	Used to enter the starting amount for calculating the state tax based on the filing status.
But Not Over	Indicates the maximum amount for which the standard deduction should be applied. NOTE: When you enter the wages over to amount, the system automatically completes the Less than column.
Amount to withhold	Amount to be deducted for income tax
Plus	Other amount to be calculated for income tax.

2. Others Contributions section

Field	Description
WBF	Contribution to the WBF (Worker's Benefit Fund) Available fields: Remittance Account General ledger account to which WBF remittances are posted. Employer Rate Employer's contribution rate applicable to WBF. Employee Rate Employee's contribution rate applicable to WBF.
Trimet	Contribution to TRIMET (Tri County Metropolitan Transportation District) representing the Transit Payroll Tax. Available fields: Remittance Account General ledger account to which Trimet remittances are posted. Employer Rate Employer's contribution rate applicable to Trimet.
LTD	Contribution to the LTD (Lane Transit District) representing the Transit Payroll Tax. Available fields: Remittance Account General ledger account to which LTD remittances are posted. Employer Rate Employer's contribution rate applicable to LTD.

3. Subtract Before / After Income Tax section

This section is used to specify whether the deductions or exemptions should be subtracted before or after the tax is calculated. If checked before, the taxable income is the gross salary – the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered a tax credit.

For the state of Oregon, the standard deduction and federal income tax must be subtracted Before, whereas the personal exemption must be subtracted After because it is considered an income tax credit.

10. For the state of South Carolina, complete the following fields:

Field	Description
Personal Exemption Amount	Amount of personal exemption applicable for this filing status. NOTE: This amount of personal exemption is applicable, regardless of the filing status of the employee. The amount of personal exemption in New York must be subtracted Before calculation of the income tax.

1. Tables section
   1. Standard Deduction Table sub-section

   Field	Description
   Allowances Equal or Over	Used to enter the minimum number of credits to which the exemption applies. NOTE: The standard deduction applicable to an employee is selected in relation to the number of credits entered in the State section of the Withholding tab in Employee Management.
   Rate	Percentage applicable on the amount exceeding the Amount Over amount.
   Maximum Amount	Maximum amount the employee is exempt from income tax.

   2. Income Tax Table sub-section

   Field	Description
   Amount Over	Used to enter the starting amount to calculate the state income tax, by filing status.
   But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
   Rate	Rate to use for income tax
   Plus Amount	Other amount to calculate for income tax.

2. Subtract Before/After Income Tax section

This section is used to specify whether the deductions or exemptions should be subtracted before or after the tax is calculated. If checked before, the taxable income is the gross salary – the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered a tax credit.

11. For the state of Vermont, complete the following fields:

1. Table by Filing Status section

This section allows user to enter by filing status, the tax credit table and the amounts of personal exemption as well as for dependants. To enter the different values, select the filing status and complete the information as needed.

Field	Description
Filing Status	Specifies the filing status to which the standard deductions and income tax calculation table. Available filing statuses include: Married and Single.

1. Standard Deduction Table sub-section

The standard deduction must be subtracted from the taxable income before calculating the amount of tax for the state.

Field	Description
Allowances Equal or Over	Used to enter the minimum number of credits to which the exemption applies. NOTE: The number of credits entered in Employee Management for this state is used to determine the amount of the standard deduction to be deducted from taxable income.
Amount	Annual amount of the deduction

2. Income TaxTable sub-section

Field	Description
Amount Over	Used to enter the starting amount to calculate the state income tax, by filing status.
But Not Over	Indicates the limit amount for which the income tax table must be applied. NOTE: By entering the amount over or equal to amount, maestro* automatically completes the But not over column.
Rate	Applicable percentage on the amount exceeding the amount over.
Plus	Amount to retain on payroll.

2. Subtract Before/After Income Tax section

This section allows user to identify if the deductions or exemptions must be subtracted before or after the calculation of the tax. If checked before, the taxable income will be the gross salary - the deductions or exemptions checked Before. Otherwise, the deductions or exemptions will be considered as a tax credit.

For the state of New York, the standard deduction must be subtracted Before. The personal exemption and additional deductions do not apply to this state.

4. Click Save.

 

See also

• Employee Management (U.S.)

 

APPENDIX

Exporting Rates

The function of exporting rates lets you extract the rates created in maestro* in an XML format so they can be shared with other users in the maestro* community.

To export the rates:

1. Click the Rates Exportation icon.
2. Complete the information based on specific requirements.

Field	Description
Export all active rates for specified date	Exports the rate valid on the date selected. For example: If there are two rates in the system, one with an effective date of 2010-01-01 and the other dated 2011-01-01. If the user enters 2010-12-31 as the effective date, only the 2010-01-01 rate will be imported. If the user kept the current date, all rates would be imported. NOTE: By default, the current date is displayed.
Export all rates taking effects on	Only exports the rates that go into effect on the selected date.
File Location	Used to specify where the export file will be saved. NOTE: When first used, the user should decide where the file should be saved. This value will be saved for the next time.

3. Click OK.

A message is displayed with the number of records exported. The file is named USPAYROLL_YYYYMMDD.XML. Click OK to complete the export.

 

Importing Rates

The function for importing rates is used to import an XML file exported from maestro*.

To import rates:

1. Click the Rates Importation icon.
2. Select the file to be imported..
3. Click OK.

If maestro* finds existing records with the same date, the system asks you to confirm the import. Click YES to overwrite the record, NO to save the current record or CANCEL to cancel the entire import and retrieve the old rates.

 

Update the Rates

1. Select the source deduction code to be updated in the summary section.
2. Click the Renewal icon
3. Enter the Effective Date and the Description that will identify the new transaction. Click OK.
4. Click OK when you see the following message: Renewed. You must enter the rates in effect as of XXX to complete the update.

Maestro* displays the newly created source deductions transaction

5. Complete the information as needed in the State or Federal tab.
6. Click Save.

 

Last modification: September 20, 2024