Mississippi Tax

For Mississippi residents, you specify the employee's status and exemptions.

Deltek Modification Date - 12/09/09

Enter the following field information for residents of Mississippi on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Enter the marital status claimed by the employee on the Mississippi Withholding Exemption Certificate, Form 89-350-98. S: Single M: Married, both spouses employed H: Head of household 1: Married, one spouse employed
Exemptions	Enter the personal exemption claimed by the employee on Form 89-350-98; enter 1 if the employee claims a personal exemption, enter zero if the employee claims no exemption. If the employee did not submit Form 89-350-98, enter zero for the number of exemptions.
Other Exemptions	Enter the number of dependents claimed by the employee on Form 89-350-98.

Automatically Calculated Variables

Deltek automatically computes the following variables:

Standard Deduction

The Standard Deduction is a variable amount deduction applied to all employees. The amount of the deduction depends on the employee’s filing status.

Status	Deduction
S	$2,300
M	$2,300
H	$3,400
1	$4,600

Allowance

The Allowance depends on the amount of the personal exemption claimed in the first Exemptions field and the number of dependents claimed in the Other Exemptions field. The Allowance is determined by the following formula:

Amount of Personal Exemptions (see table) + ($1,500 * number of Other Exemptions)

If the number is	And the status is	Then the amount is
0	S, M, H, or 1	0
1 or more	S	$6,000
1 or more	H	$9,500
1 or more	M or 1	$12,000

How Deltek Calculates Tax

To calculate an employee's Mississippi State 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 Standard Deduction, Allowance, and 401(k) and 125/Cafeteria Plan contributions 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.