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US Payroll Instructions


 

 

State Withholding Instructions

2005 withholding tax table formulas have changed for US Federal taxes and for about 1/3 of the US states. For the free download of 2005 tables, click here.

The following states have changed payroll withholding formulas for 2005: California, Hawaii, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, New Jersey , New Mexico, New York , Oklahoma, Pennsylvania, Vermont.

The following states have not changed their withholding formulas for 2005: Alabama, Arkansas, Arizona, Colorado, Connecticut, Delaware, District of Columbia , Georgia, Illinois, Kansas, Idaho, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, Utah, Virginia, West Virginia, Wisconsin.

The following states have no state income tax withholding: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.

US Federal Withholding Instructions

Enter the number of claimed exemptions in the Fed Exemptions field in each Employee account.

Use the following to determine the value for the Marital Status popup menu in each Employee account:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used

NOTE: A few states use slightly different conditions for the marital status choices. Follow the links above to see specific instructions for your state.

If an employee claims additional federal withholding on their W-4 form, enter it into the Fed Withholding field in Employee account record (click the Payroll Setup button to see it).

Goldenseal will automatically calculate the correct federal withholding for each pay period.

Earned Income Credit

If an employee claims the Earned Income Credit (EIC) and wants advanced payment of the credit, you'll need to create an additional tax package that includes it.

To do that, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Packages from the submenu.
  2. Click on the Tax Package that applies to the employee.
  3. Click the Duplicate button.
  4. Give the package a new name (for example, California with EIC).
  5. Click on the Advanced EIC item to include it in the package.
  6. Click OK, then click Close to leave the Tax Package setup.
  7. Choose Employees from the Accounts menu.
  8. Locate the employee who gets the credit.
  9. Click the Payroll Setup button, then click in the Tax Package field, and enter the new package.

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