Costpoint Online Help

Contents of the Manage State Tax Withholding Adjustments Screen

Use the fields and options to configure the Manage State Tax Withholding Adjustments screen.

Identification

Field Description
State

Enter, or click to select, the state code. The code you enter is validated against the State table. The state name displays in the field to the right.

Effective Date

Enter, or click to select, the date on which the exemption allowances or tax credits become effective. The format for this date is MM/DD/YYYY.

Type

From the drop-down list, select the type of tax allowances and credits that you are entering. Valid options are:

  • Adopted Child Dependent Exemption
  • Age Exemption
  • Blindness Exemption
  • Dependent Exemption Allowances
  • Dependent Tax Credits
  • Federal W/H Credit Limit
  • First-Time Claimed Dependent Exemption
  • Low Income Exemption
  • Age 65 or Over Exemption
  • Personal Exemption Allowances
  • Personal Tax Credits
  • Phase-Out Amount
  • Recapture Amount
  • Special Deduction
  • Supplemental Tax Rate
  • Veteran Exemption
  • Withholding Table
Filing Status
  • Enter, or click to select, the state withholding filing status that determines which tax withholding tables will be used to calculate the employee’s state taxes.

Tax Withholding Adjustments

To enter a new row, click .

Field Description
Wage Type

This field displays the type of wage that will be applied to the adjustment table. Valid values are Gross Wages, Taxable Wages, or Bonus. The Bonus wage type is used for Maryland state withholding which has different bonus rates for each county.

For Annualized Wage Over/Wage Basis

Enter the level of annualized wage.

Number of Exemptions or Credits

Enter the number of exemptions or credits in this field. This field is enabled only if you select Personal Exemption Allowances from the Type drop-down list.

Base Amount

Enter the base amount of credit/exemption for this level of wage.

Amount per Credit/Exemption

Enter the amount per credit/exemption for this level of wage.

Exemption Threshold

This field displays the minimum number of exemptions that is applicable for this adjustment. This field is enabled only if the state is Massachusetts (MA) and the Type drop-down list option is Low Income Exemption.

Percent of Excess

Enter the percent of excess for this level of wage or percent of annualized wage.

1st Exempt Override
Note: In a few states, the first exemption amount differs from subsequent exemption amounts. Example: An employee claims three exemptions on the Manage Employee Taxes screen. The total exemption amount is the first exemption override amount + the amount per credit/exemption x 2.

Select this check box to override the first exemption.

1st Exempt Override Amount

Enter the amount by which you want to override the first exemption. If you did not select the 1st Exempt Override check box, this field displays 0.00 and is disabled.

Other Amount 1

Enter the other tax adjustment amount/limit for the state.

The appropriate field label and status text will display according to the selected option in the Type drop-down list.

Type Label/Status Text
Federal W/H Credit Limit Credit Limit 1

Enter the credit limit amount that is applicable for this state.

Personal Tax Credits Exemption Limit 1

Enter the exemption limit amount that is applicable for this state.

Personal Exemption Allowances 2nd Exempt Amount 1

Enter the second exemption amount that is applicable for this state.

Note: This will be enabled if state is Missouri (MO)

Recapture Amount Recapture Amount 1

Enter the recapture amount 1 that is applicable for this state.

Withholding Table Base Limit 1

Enter the base limit amount that is applicable for this state.

Age Exemption Age Limit 1

Enter the lower age limit amount that is applicable for this state.

Other Amount 2

Enter other tax adjustment amount/limit for this state.

The appropriate field label and status text will display according to the selected Type > drop-down list option. This field is enabled if the Type drop-down list option is Recapture Amount > or > Age Exemption.

Type Label/Status Text
Recapture Amount Recapture Amount 2

Enter the recapture amount 2 that is applicable for this state.

Age Exemption Age Limit 2

Enter the upper age limit amount that is applicable for this state.

Other Rate 1

This field is for other tax adjustment rate for this state.

The appropriate field label and status text will display according to the selected Type drop-down list option. This field is enabled if the Type drop-down list option is Personal Tax Credits.

Type Label/Status Text
Personal Tax Credits Exemption Rate 1

Enter the exemption rate that is applicable for this state.