United States Payroll Tax Info

This section includes specific tax info for US Federal tax, and for each US State.
For Canadian provinces, click here.

GENERAL US TAX INFO
        Basic US Setup | Additional Withholding | Advanced EIC | Backup Withholding
        Entering SUTA Tax | Multiple State Deductions | Rounding | Tax Periods

NORTHEAST STATES
        Connecticut | Delaware | District of Columbia | Maine | Maryland | Massachusetts
        New Hampshire | New Jersey | New York | Pennsylvania | Rhode Island | Vermont

SOUTHERN STATES
        Alabama | Arkansas | Florida | Georgia | Kentucky | Louisiana | Mississippi
        North Carolina | Oklahoma | South Carolina | Tennessee | Texas | Virginia | West Virginia

MIDWEST STATES
        Illinois | Indiana | Iowa | Kansas | Michigan | Minnesota | Missouri | Nebraska
        North Dakota | Ohio | South Dakota | Wisconsin

WESTERN STATES
        Alaska | Arizona | California | Colorado | Hawaii | Idaho | Montana
        Nevada | New Mexico | Oregon | Utah | Washington | Wyoming

RELATED TOPICS
       Employee Accounts | Payroll Records | Tax Items | Tax Packages
       Tax Tables | Wage Schedules | Writing Payroll

Basic US Setup

When you import payroll taxes for your state, you'll also get Tax Items for the following US federal taxes:
  • Federal income tax
  • Social Security tax (employee and employer portions)
  • Medicare tax (employee and employer portions)
  • FUTA (Federal unemployment insurance)
To set up federal tax withholding, fill in the following fields in each Employee account:
  • Marital status
  • Federal Exemptions (from W-4 form)

Additional Withholding

If some employees opt for additional federal withholding on their W-4 form, follow these steps:
  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. Open the Federal Tax.
  3. Click on the First Adjustment popup menu, and choose Plus Fed Dollars.
  4. Click OK.
  5. Click Done to close the Tax Items list.
  6. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  7. In the employee account, scroll down until you see the Additional Payroll Details area.
  8. Enter the additional withholding amount in the Fed Withholding field.

Advanced EIC Payments

Advanced EIC payments to employees are not included in the standard tax packages.  If you give Advanced EIC payments to one or more of your employees, 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 this employee.
  3. Click the Duplicate button.
  4. Click the Edit button.
  5. Turn on the checkmark next to the Advanced EIC tax item (Single or Married).  Give a new name to the tax package.
  6. Click OK.
  7. Open the Employee account, and enter the new tax package into the Tax Package field.

Backup Withholding

If you need to make backup withholding from an employee, follow these steps:
  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. Click the New button.
  3. For a simple percentage tax, enter Direct Percentage as a calculation method, and enter the percentage into the number field.
  4. Click OK.
  5. Repeat steps 2 to 4 for any additional backup withholding taxes, if any.
  6. Choose Payroll Setup from the Costs menu, and choose Tax Packages from the submenu.
  7. Click the New button.
  8. Turn on the checkmark next to the new backup withholding item(s), and any other taxes that apply to this employee.
  9. Click OK.
  10. Open the Employee account, and enter the new tax package into the Tax Package field.

Entering SUTA Tax

SUTA Tax rates are usually different for each company-- based on your experience rating.

To enter your state SUTA tax rate, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items.  Locate your state's SUTA tax in the list, and double-click on it.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.
HINT-- If you don't see SUTA in the list, you'll need to import your state's payroll info first.

Tax Periods

  All of the tax tables are computed on either a weekly or yearly income basis.  Goldenseal will automatically make the appropriate calculations for your payroll period, whether it is weekly, bi-weekly, monthly or otherwise.

Rounding

  If your state requires withholding amounts to be rounded to the nearest dollar or dime, you can select the appropriate rounding method in the state tax items for your state.  Choose a method from the popup menu in the Rounding field in each tax item.  For most states we use Penny Rounding, since it is more accurate.

Taxes for Multiple States

If you collect withholding taxes for more than one state, Import the state payroll for each state that you need.

If you need to use more than one state's taxes for the same employee, you'll probably need to create a custom Tax Package that includes the different taxes. To do so, follow these steps:

  1. Import tax files for each state.
  2. Choose Payroll Setup from the Costs menu, then choose Tax Packages from the submenu.
  3. Click on a tax package for one of the states.
  4. Click the Duplicate button.
  5. Click the Edit button.
  6. Turn on all the taxes that need to be collected for this employee.  You may want to rename the package.
  7. Click OK, then click Done to the Tax Package List.
  8. Open the Employee account.
  9. Enter the new tax package into the Tax Package field.

Alabama

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
  6. If an employee uses the zero deduction table (O table), enter the Zero Deduction Tax Package into the Tax Package field.  Otherwise enter the standard tax package.
Use the following to determine the value for the Marital Status popup menu in each Employee account:

Single- single employee with one personal exemption (S table)
Married- married employee with two personal exemptions (M table)
Dual Income- married employee with one personal exemption (S table)
Head of House- employee claims Head of Family status
Other- not used

HINT-- An additional deduction of Annual Federal tax withheld is already factored into the state withholding calculation.

Alaska

There is no State Income tax.

To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status for Federal Taxes.
  4. Enter the number of federal dependents into the Federal Exemptions field.

Arizona

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
  Arizona state income tax uses different rates for gross income over or under a cutoff amount ($15,000 in 2000).

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

Single- single employee with gross income UNDER the cutoff amount
Married- married employee with gross income UNDER the cutoff amount
Dual Income- married employee with gross income OVER the cutoff amount
Head of House- single employee with gross income OVER the cutoff amount
Other- not used

Arkansas

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
Each entered state exemption results in a $20 tax credit, deducted from annual gross tax.

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

Tax tables are calculated yearly

First Adjustment:   Standard Deduction, $2000
Second Adjustment: Withholding allowance  $20.00 tax credit per state allowance, subtracted from gross tax

California

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
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 or is single and claims 2 or more withholding allowances
Other- not used

Additional allowances are claimed by the employee on the DE-4 or W-4 form, and each may be allocated as either an Estimated Deduction or as a Tax Exemption Credit (see CA Employer's Guide, Method B).

Allowances to be used as Estimated Deductions should be entered into the Other Exemptions field in the Employee Account.

Allowances to be used as Tax Exemption Credits should be entered into the State Exemptions field in the Employee Account.

California assesses an Employment Training Tax.  This tax is paid by the employer, and is in the CA Employee Training tax item.

 Employees must pay a State Disability Insurance (SDI).  It is in the CA State Disability tax item.

California calculates Worker's Comp insurance as category taxes.  Enter the proper rate for each type of work in the Category Systems that you use for the work you do.

Colorado

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
  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.

Connecticut

The Connecticut tax calculation is by far the most complicated for any US state.

 You will need to assign different Tax Packages to employees, depending on their filing status.  The Marital Status field in each Employee account is only used for Federal taxes.

To assign tax packages and enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  Choose either Single or Married.
  4. Enter the appropriate tax package into the Tax Package field.  Base it on their filing status from Line 1 from Form CT-W4 (status A, B, C or D), see note below.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of state dependents into the State Exemptions field.
  7. If any additional amount is to be withheld, enter this amount into the State Withhold field in the Employee Account.  If there is a claimed amount to be subtracted from annual withholding, as indicated on Line 3 from Form CT-W4, enter this as a negative amount into the State Withhold field.
HINT-- Connecticut state tax is calculated using a triple table method.  Filing status A through C have exemptions and personal tax credits that are based on annual wages.  Filing status D receives no exemptions or tax credits.  Taxable income is determined by a standard step table.

Delaware

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
Use the following to determine the value for the Marital Status popup menu in each Employee account:

Single- single employee
Married- married, filing joint return
Dual Income- married, filing separate returns
Head of House- not used
Other- not used

If you have employees who live in Maryland but work in Delaware, use one of the special Tax Packages for Maryland residents.  Otherwise enter the standard state tax package into the Tax Package field of the Employee account.

If you need to collect taxes for more than one state, click here.

District of Columbia

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
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

Florida

There is no Florida State Income Tax.

 To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use Single or Married for Federal Taxes.
  4. Enter the number of federal dependents into the Federal Exemptions field.

Georgia

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
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

Hawaii

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
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

Idaho

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
  6. If an employee uses the zero deduction table (O table), enter the Zero Deduction tax package into the Tax Package field.  Otherwise enter the standard tax package.
  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

Illinois

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status, which is used only for Federal Taxes.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of state dependents into the State Exemptions field.

Indiana

Indiana charges both state and county income taxes.  See State of Indiana Departmental Notice #1, available from the Indiana Department of Revenue, for a listing of local tax rates for each county.

 To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status, which is used only for federal taxes.
  4. Choose the correct Tax Package according to the note above.  State and County taxes are included in each package.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of personal exemptions, claimed on Form WH-4, in the "State Exemptions".
  7. Enter the number of dependent exemptions, claimed on Form WH-4, in the "Other Exemptions" field.

Iowa

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.


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

Single- single employee with 0 or 1 deduction
Married- married with 0 or 1 deduction
Dual Income- married with 2 or more deductions
Head of House- single with 2 or more deductions
Other- not used

Kansas

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
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

Kentucky

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
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

Louisiana

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
  6. Enter the number of dependency credits claimed in the "Other Exemptions".  Every child and stepchild may be claimed as a dependency credit (as described in Internal Revenue Code, Section 152).
Employers pay an SAFDST Debt Service Tax, which is a direct 1.4% tax on each employee's gross wages.  This Tax Item is included in each of the Louisiana State Tax Packages.

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

Single- employee with 0 or 1 deduction
Married- employee with 2 or more deductions
Dual Income- not used
Head of House- not used
Other- not used

Maine

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
Use the following to determine the value for the Marital Status popup menu in each Employee account:

Single- single employee
Married- married, single income
Dual Income- married, two incomes
Head of House- not used
Other- not used

HINT-- Married employees with two incomes may still elect to withhold according to the Married one income schedule, but may owe money at the end of the year due to underwithholding.

Maryland

Maryland charges local taxes, and also has special tax rates for non-residents and for residents employed in Delaware.

 To assign the correct tax rate, open the Employee account and enter the correct state tax package into the Tax Package field.  Choose the tax package according to where the employee resides, not where he or she works.

Note:  As of 2000, state and local taxes are combined into one amount.

To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field, this is used only to calculate Federal taxes. (see note below).
  4. Choose the correct Tax package.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.
If an employee is single or a student and earns less than $135.58 per week ($7050 per year), no Maryland Income Tax is withheld.  Goldenseal uses $135.58 as the minimum base from which to withhold Maryland Income Tax for all Single Tax Packages (reflected in the First Adjustment field in the MD Single Tax Items).

If a Married employee is paid less than $96 per week ($5000 per year), no Maryland Income Tax is withheld.  Goldenseal uses $96.00 as the minimum base from which to withhold Maryland Income Tax for all Married tax packages (reflected in the First Adjustment field in the MD Married Tax Items).

If you need to collect taxes for more than one state, click here.

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

Massachusetts

Single and Married taxpayers pay the same state rate.  There is a separate rate for head of household.

 To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
  The Massachusetts state income tax system includes a special deduction for blindness.  If the employee and/or her spouse is blind, enter a 1 into the Other Exemptions field in the Employee Account.  Otherwise, leave the field blank.

 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

Michigan

Michigan charges several local taxes, with separate rates for residents and non-residents.

If the employee resides (resident) or works (non-resident) in Saginaw, Detroit, or Highland Park, choose the Tax Package for that location.
If the employee is a resident of an area subject to 1% local tax, choose the 1% Local Tax package.
The 0.5% Local Tax package is for Nonresident employees working in areas subject to 1% local tax.

 To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Choose the correct Tax package for the employee
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.  If the employee qualifies for any special exemptions, report the number of special exemptions in the "Other Exemptions" field in the Employee Account.


The Marital Status field is used only to calculate Federal taxes.
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

Minnesota

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

Mississippi

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see notes below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field (see note below).
Use the following to determine the value for the Marital Status popup menu in each Employee account:

Single- single employee
Married- married, single income
Dual Income- married, dual income
Head of House- unmarried head of household
Other- not used

 If your employee's marital status is married, filing jointly, you may need to make adjustments to the Mississippi Married 2 Income Tax Table.  Goldenseal uses a default $6000 Personal Exemption Allowance (subtracted as the First adjustment), which is equal to half of the total $12000 Personal Exemption Allowance available to the employee and her spouse.  The employee and spouse may elect to split up this Personal Exemption Allowance in increments of $500 in any way they so choose.  If your employee is claiming any amount other than $6000 for her Personal Exemption Allowance, you will need to create a duplicate copy of the tax package and tax item, and then change this amount in the First adjustment field on the Mississippi Married 2 Income Tax Table.

 The first state exemption claimed by the employee will deduct either $6000 (Single or Married 2 Income), $9500 (Head of Household), or $12000 (Married 1 Income) from the gross wages to compute taxable income.  Each additional exemption will deduct $1500 from wages.

Missouri

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
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 - see note below
Other- not used

 If your employee files Head of Household with 5 or more exemptions, take the total number of exemptions, subtract 4,  and multiply by $1200.  Enter this amount in the State  Withhold field in the Employee's Account, and add a third adjustment to the employee's tax table, option State Dollar Amount.

Montana

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

Nebraska

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

Nevada

There is no State Income tax.

To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.

New Hampshire

There is no State Income tax.

To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.

New Jersey

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

Single- single employee (A rate)
Married- married filing jointly (B rate)
Dual Income- married filing separately (A rate)
Head of House- unmarried head of household (B rate)
Other- not used

 If an employee chooses to withhold at the C, D or E rate (from line 3 of the NJ-W4 form), enter the matching Tax Package for them into the Tax Package field in the Employee account.  In these cases, the Marital Status applies to the Federal taxes only.  Otherwise use the regular state Tax Package.

 To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see notes above).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
All New Jersey state tax packages also include the following state taxes:
  • New Jersey Disability Tax  (paid by employees)
  • Workforce Development Tax Item  (paid by employees)
  • SUTA premium  (paid by employers)

New Mexico

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

New York

Enter the correct tax package into the Tax Package field.

Separate Tax Packages are used for residents of New York City or Yonkers.  If an employee resides in either, choose the appropriate Resident Tax Package; if an employee works in but lives outside of either, choose the appropriate Non-resident package.

 To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Choose the correct Tax package (see notes above).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.
  7. Enter any Local exemptions in the Local exemptions field.


NY Taxes include a State Disability deduction (paid by employees).

North Carolina

State tax withholding uses different rates for average weekly income that is above or below a cutoff amount ($1153.85 in 2000).

 Enter the Line 1 tax package into the Tax Package field if the employee's weekly income is below the cutoff, and use the Line 2 package if the weekly income is above the cutoff.

Additional tax packages are also available for qualifying widows or widowers.

 To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
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

North Dakota

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

Ohio

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

Oklahoma

To choose the correct tax package, you will need to calculate a deduction for each employee.  The procedure for this is as follows:
  1. Multiply the number of federal exemptions claimed by the employee by the federal exemption amount ($2800).
  2. Add the amount from step 1 to the employee's federal standard deduction amount ($7350 for Single, Married Joint 1 income, Married Separate and Head of Household, $4400 for  Married 2 income)
  3. Compare this number to the employee's predicted annual wages.
  4. If the sum of steps 1 and 2 is smaller than estimated annual wages, multiply this sum by 0.15 and enter the result as a negative amount in the "State Withhold" field in the Employee Account.  Enter the regular state Tax Package into the Tax package field.
  5. If the sum of steps 1 and 2 is greater than the employee's estimated annual wages, leave the "State Withhold" field blank in the Employee account, and enter the "No Special Deduction" tax package into the Tax Package field.


  To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Select the Tax package determined by steps 1 - 3 above.  Don't forget to enter the amount needed in the "State Withhold" field.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.
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

Oregon

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.
Use the following to determine the value for the Marital Status popup menu in each Employee account:

Single- single employee
Married- married, single income
Dual Income- married, dual income
Head of House- single with 3+ deductions
Other- not used

Pennsylvania

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

Rhode Island

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

South Carolina

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Choose the correct Tax package (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.
  If an employee uses the zero deduction option for state withholding, assign the Zero Deduction tax package to them in the Tax Package field of the Employee account.  Otherwise use the standard state Tax Package.

South Dakota

There is no State Income tax.

To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.

Tennessee

There is no State Income tax.

To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.

Texas

There is no State Income tax.

To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.

Utah

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of state dependents into the State Exemptions field.

Vermont

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

Virginia

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

Washington

There is no State Income tax.

To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
Washington calculates Disability tax and Worker's Comp insurance as category taxes.  Enter the proper rate for each type of work in the Category Systems that you use for the work you do.

West Virginia

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.

Wisconsin

To enter withholding information for an employee, follow these steps:
  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Choose the correct Tax package (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.
  If an employee uses the zero deduction option for State Withholding, assign the Zero Deduction tax package to them in the Tax Package field of the Employee account.  Otherwise use the standard state Tax Package.

Wyoming

There is no State Income tax.

To enter withholding information for an employee, follow these steps:

  1. Choose Cost Accounts from the Accounts menu, and choose Employees from the submenu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field.  You only need to use the Single or Married status.
  4. Enter the number of federal dependents into the Federal Exemptions field.
  5. Enter the number of dependents into the State Exemptions field.