Employee Withholdings

Your firm can calculate and track employee withholdings based on an employee's gross wages or the location where work is performed. Use the tax locale feature to track work based on where work is performed.

If you use the tax locale feature, Vision determines the employee's withholdings based on project or employee settings. You establish employee withholdings on the Withholdings Grid of the Payroll Tab in the Employee Info Center. You determine which method Vision uses based on project tax locale options established on this tab and in the Project Info Center.

Locale Method Calculation Example

For a salaried employee where the Locale Method is Follow Project Locale and the salary for each pay period is $1000:

Total Regular Hours Worked In Massachusetts (MA), the total regular hours worked = 60.

In California (CA), the total regular hours worked = 20.

Calculation The MA withholding is based on taxable wage $1000 * (60/80) =$750

The CA withholding is based on taxable wage $1000 * (20/80) =$250

Percent of Wages Calculation Example

For a salaried employee where the Locale Method is % of Wages and the salary for each pay period is $1000:

Withholding In Massachusetts (MA), the percent = 70

In California (CA), the percent = 30

(For % of Wages, the summation for withholdings must equal 100.)

Calculation The MA withholding is based on taxable wage $1000*.7=$700

The CA withholding is based on taxable wage $1000 *.3 = $300