Federal Income Tax
For federal taxes, you specify the status and exemptions.
Deltek Modification Date - 1/24/22
Enter the following field information on the Withholdings grid on the Payroll tab of the Employees hub:
Field | Description |
---|---|
Filing Status | Enter the marital status claimed by the employee for federal income tax purposes on Form W-4. Options are:
If you enter a status of Married, but withhold at a higher Single rate on the W-4 form, enter a status of S on the Withholdings grid. |
Exemptions | Enter the number of exemptions claimed by the employee on federal Form W-4. This figure includes:
|
Other Exemptions | Federal tax calculations do not use this field. |
Supplemental Wages
The tax rate for supplemental wages (bonus runs) is 37% when the bonus amount is over a million dollars. Otherwise the rate is 22%.
Automatically Calculated Variables
Vantagepoint automatically computes the allowance, which is used in calculating the net income tax.
Allowance
The Allowance is based on the number of withholding exemptions entered in the first Exemptions field. It is determined by multiplying the number of exemptions by $4,300.
Nonresident Alien
The nonresident alien adjustment amount is $8,250 (if the employee was first paid wages before 2020 and has not submitted a Form W-4 for 2020 or later) or $12,950 (if the employee was first paid wages in 2020 or later or has submitted a Form W-4 for 2020 or later).
How Vantagepoint Calculates Tax
To calculate an employee's Federal tax, Vantagepoint 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 allowance, 401(k) Plan contributions, and 125/Cafeteria Plan contributions from the employee's gross wages for the pay period to determine taxable income.
- Calculates the net income tax using Tax Calculation Method 1.
- 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.