Arkansas Tax
For Arkansas residents, you specify the employee's status and exemptions.
Deltek Modification Date - 12/19/14
Enter the following information on the Withholding grid on the Payroll tab of the Employee Info Center:
Supplemental Wages
Supplemental (bonus run) wages are calculated at a flat rate of 6.9%.
Automatically Calculated Variables
Vision computes the following variables, based on the exemptions claimed by the employee:
Standard Deduction
The Standard Deduction is a fixed amount deduction applied to all employees. The amount of the deduction is $2,200.
Credit
The Credit is based on the number of exemptions for dependents claimed by the employee. The number of exemptions for dependents is entered in the first Exemptions field.
To determine the amount of the credit, multiply the number of exemptions by $26.00.
How Vision Calculates Tax
To calculate an employee's Arkansas 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 and any 401(k) and 125/Cafeteria plan contributions from the employee's gross wages for the pay period to determine taxable income.
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Calculates the annual income tax using Tax Calculation Method 1.
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Subtracts the Credit amount (if applicable) from the annual income tax to determine net annual income tax.
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Divides the net annual income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.