Alabama Tax

Deltek Modification Date - 2/22/19

Enter the following information 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 Alabama Employee’s Withholding Exemption Certificate, Form A-4. Options are: S: Single, claiming self. M: Married, claiming self and spouse. 2: Married, filing separately. O: No personal exception, claiming no personal exemption (used when the employee did not submit Form A-4). H: Head of household.
Exemptions	Enter the number of exemptions claimed by the employee on Form A-4. If the employee claimed no exemptions, enter zero.
Other Exemptions	Alabama’s tax calculations do not use the Other Exemptions field.

DPS computes the following variables, which are used in determining the net income.

Standard Deduction

The standard deduction is a variable deduction applied to all employees. The deduction is based on annualized wages and the employee’s filing status.

If Annualized Wages are between		Use the columns below for Standard Deduction based on Employee Form A-4 filing status
		M	H	S
0	$23,499	$7,500	$4,700	$2,500
$23,500	$23,999	$7,325	$4,565	$2,475
$24,000	$24,499	$7,150	$4,430	$2,450
$24,500	$24,999	$6,975	$4,295	$2,425
$25,000	$25,499	$6,800	$4,160	$2,400
$25,500	$25,999	$6,625	$4,025	$2,375
$26,000	$26,499	$6,450	$3,890	$2,350
$26,500	$26,999	$6,275	$3,755	$2,325
$27,000	$27,499	$6,100	$3,620	$2,300
$27,500	$27,999	$5,925	$3,485	$2,275
$28,000	$28,499	$5,750	$3,350	$2,250
$28,500	$28,999	$5,575	$3,215	$2,225
$29,000	$29,499	$5,400	$3,080	$2,200
$29,500	$29,999	$5,225	$2,945	$2,175
$30,000	$30,499	$5,050	$2,810	$2,150
$30,500	$30,999	$4,875	$2,675	$2,125
$31,000	$31,499	$4,700	$2,540	$2,100
$31,500	$31,999	$4,525	$2,405	$2,075
$32,000	$32,499	$4,350	$2,270	$2,050
$32,500	$32,999	$4,175	$2,135	$2,025
$33,000 and over		$4,000	$2,000	$2,000

If Annualized Wages are between		Use this column for Standard Deduction based on filing status MS (2 in Vision)
		MS
0	$10,749	$3,750
$10,750	$10,999	$3,662
$11,000	$11,249	$3,574
$11,250	$11,499	$3,486
$11,500	$11,749	$3,398
$11,750	$11,999	$3,310
$12,000	$12,249	$3,222
$12,250	$12,499	$3,134
$12,500	$12,749	$3,046
$12,750	$12,999	$2,958
$13,000	$13,249	$2,870
$13,250	$13,499	$2,782
$13,500	$13,749	$2,694
$13,750	$13,999	$2,606
$14,000	$14,249	$2,518
$14,250	$14,499	$2,430
$14,500	$14,749	$2,342
$14,750	$14,999	$2,254
$15,000	$15,249	$2,166
$15,250	$15,499	$2,078
$15,500 and over		$2,000

Allowance

The allowance is based on the filing status claimed by the employee and the number of exemptions entered in the first Exemptions field.

If the status is	Then the maximum is
S or 2	$1,500 + (number of dependents other than spouse x $1000.00 if annualized wages are less than or equal to $20,000 or x $500 if annualized wages are greater than $20,000 but less than $100,000 or x $300 if greater than $100,000) for single or married filing separately employees, claiming one or more exemptions.
M or H	$3,000 + (number of dependents other than spouse x $1000.00 if annualized wages are less than or equal to $20,000 or x $500 if annualized wages are greater than $20,000 but less than $100,000 or x $300 if greater than $100,000) for married or head of household employees, claiming one or more exemption
O	0

The federal income tax (F.I.T.) deduction is equal to the employee’s annual federal income tax as calculated by DPS.

To calculate an employee's Alabama state tax, DPS does the following:

Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
Subtracts the employee's standard deduction, allowance, annualized F.I.T., 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
Calculates the annual income tax using Tax Calculation Method 1.
Divides the annual income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.