Alabama Tax
For Alabama residents, you specify the employee's status and exemptions.
Deltek Modification Date - 6/17/11
Enter the following information on the Withholding grid on the Payroll tab of the Employee Info Center:
Automatically Calculated Variables
Vision 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 | $24,999 | $7,500 | $4,700 | $2,500 |
$20,500 | $20,999 | $7,325 | $4,565 | $2,475 |
$21,000 | $21,499 | $7,150 | $4,430 | $2,450 |
$21,500 | $21,999 | $6,975 | $4,295 | $2,425 |
$22,000 | $22,499 | $6,800 | $4,160 | $2,400 |
$22,500 | $22,999 | $6,625 | $4,025 | $2,375 |
$23,000 | $23,499 | $6,450 | $3,890 | $2,350 |
$23,500 | $23,999 | $6,275 | $3,755 | $2,325 |
$24,000 | $24,499 | $6,100 | $3,620 | $2,300 |
$24,500 | $24,999 | $5,925 | $3,485 | $2,275 |
$25,000 | $25,499 | $5,750 | $3,350 | $2,250 |
$25,500 | $25,999 | $5,575 | $3,215 | $2,225 |
$26,000 | $26,499 | $5,400 | $3,080 | $2,200 |
$26,500 | $26,999 | $5,225 | $2,945 | $2,175 |
$27,000 | $27,499 | $5,050 | $2,810 | $2,150 |
$27,500 | $27,999 | $4,875 | $2,675 | $2,125 |
$28,000 | $28,499 | $4,700 | $2,540 | $2,100 |
$28,500 | $28,999 | $4,525 | $2,405 | $2,075 |
$29,000 | $29,499 | $4,350 | $2,270 | $2,050 |
$29,500 | $29,999 | $4,175 | $2,135 | $2,025 |
$30,000 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 | $10,249 | $3,750 |
$10,250 | $10,499 | $3,662 |
$10,500 | $10,749 | $3,574 |
$10,750 | $10,999 | $3,486 |
$11,000 | $11,249 | $3,398 |
$11,250 | $11,499 | $3,310 |
$11,500 | $11,749 | $3,222 |
$11,750 | $11,999 | $3,134 |
$12,000 | $12,249 | $3,046 |
$12,250 | $12,499 | $2,958 |
$12,500 | $12,749 | $2,870 |
$12,750 | $12,999 | $2,782 |
$13,000 | $13,249 | $2,694 |
$13,250 | $13,499 | $2,606 |
$13,500 | $13,749 | $2,518 |
$13,750 | $13,999 | $2,430 |
$14,000 | $14,249 | $2,342 |
$14,250 | $14,499 | $2,254 |
$14,500 | $14,749 | $2,166 |
$14,750 | $14,999 | $2,078 |
$15,000 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 |
Federal Income Tax Deduction
The federal income tax ( F.I.T) deduction is equal to the employee’s annual federal income tax as calculated by Vision.
How Vision Calculates Tax
To calculate an employee's Alabama state tax, Vision does the following:
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Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
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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.
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Calculates the annual income tax using Tax Calculation Method 1.
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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.