New Jersey Tax

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

Deltek Modification Date - 12/09/09

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

Field	Description
Status	Enter the appropriate rate variable for the New Jersey rate table to be used for the employee: A: Single, or married and withholding at a single rate on federal Form W-4; or if Box 1 or 2 in Item 2 is checked on Form NJ-W4. B: Married on federal Form W-4; or if Box 2, 4, or % is checked on Form NJ-W4. C: An optional table chosen by employee on Line 3 of Form NJ-W4. D: An optional table chosen by employee on Line 3 of Form NJ-W4. E: An optional table chosen by employee on Line 3 of Form NJ-W4.
Exemptions	Enter a the total number of allowances claimed by the employee for federal income tax purposes on Form W-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form W-4. Additional exemptions for age and blindness.
Other Exemptions	Enter the number of exemptions for dependents.

Automatically Calculated Variables

Deltek automatically computes the Allowance, which is used in determining the net income tax.

Allowance

The Allowance is based on the number of exemptions in the Exemptions and Other Exemptions fields. It is determined by multiplying the number of exemptions in the first Exemptions field by $1,000, and the number of exemptions in the Other Exemptions field by $1,500.

How Deltek Calculates Tax

To calculate an employee's New Jersey 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 Allowance and 401(k) 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.