Iowa Tax
For Iowa residents, you specify the employee's exemptions.
Deltek Modification Date - 1/08/10
Enter the following field information for residents of Iowa on the Withholding grid on the Payroll tab of the Employee Info Center:
Supplemental Wages
For bonus payroll runs, the Iowa state tax is calculated at 6%.
Automatically Calculated Variables
Vision automatically computes the following variables, which are used in determining the net income tax.
Standard Deduction
The Standard Deduction is applied to all employees. The amount of the deduction depends on the number of exemptions claimed in the first Exemptions field, as follows:
Number of Exemptions | Deduction |
---|---|
0 or 1 | $1,650 |
2 or more | $4,060 |
Federal Income Tax Deduction
The Federal Income Tax Deduction ( F.I.T.) is a variable deduction equal to the employee’s annual federal income tax as calculated by Vision.
Credit
The Credit is based on the number of exemptions entered in the first Exemptions field. The employee is entitled to $40 for each exemption.
Number of Exemptions | Amount of Credit |
---|---|
0 | $0 |
1 | $40 |
2 | $80 |
more than 2 | $40 for each exemption |
How Vision Calculates Tax
To calculate an employee's Iowa 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, Federal Income Tax Deduction (equal to the employee’s federal tax payment), and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
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Calculates the computed tax by applying Tax Calculation Method 1 to the taxable income.
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Subtracts a Credit, if applicable, from the computed tax to determine the net income tax.
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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. Vision then rounds the withheld amount to the nearest dollar.