New Jersey Tax
For New Jersey residents, you specify the employee's status and exemptions.
Deltek Modification Date - 8/17/18
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:
|
Exemptions |
Enter a the total number of allowances claimed by the employee for federal income tax purposes on Form W-4. This figure includes:
|
Other Exemptions | Enter the number of exemptions for dependents. |
Automatically Calculated Variables
Vantagepoint 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 $1,000.
How Vantagepoint Calculates Tax
To calculate an employee's New Jersey State 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 and 401(k) plan contributions from the employee's annualized gross wages to determine taxable income.
- Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
- 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.