City of Detroit Resident and Non-Resident Tax

For City of Detroit residents and non-residents, you specify the employee's exemptions.

Deltek Modification Date - 6/29/04

Enter the following field information for residents and non-residents of Detroit on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Detroit's tax calculations do not use the Status field.
Exemptions	Enter the total number of withholding exemptions claimed by the employee on City of Detroit Income Tax Return, Form D-1040(R) or D-1040(NR). If the employee did not submit Form D-1040(R) or D-1040(NR), use the total number of exemptions claimed by the employee for federal income tax purposes on Form W-4. This figure includes: Personal exemptions for self and spouse. Additional exemptions for age, blindness, disability, or deafness Exemptions for dependents
Other Exemptions	The City of Detroit's tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

Deltek automatically computes the following variable.

Allowance

The Allowance is based on the number of exemptions in the first Exemptions field. It is determined by multiplying the number of exemptions by $750.

How Deltek Calculates Tax

To calculate an employee's City of Detroit tax, Deltek does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's Allowance from the employee's annualized gross wages to determine taxable income.
3. Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.