Kentucky Tax
For Kentucky residents, you specify the employee's exemptions.
Deltek Modification Date - 1/19/18
Enter the following field information for residents of Kentucky on the Withholding grid on the Payroll tab of the Employee Info Center:
Automatically Calculated Variables
Vision automatically computes the following variables, which are used in determining the net income tax.
Standard Deduction
The standard deduction is a fixed amount deduction applied to all employees. The amount of the deduction is $2,530.
Credit
The credit is based on the number of exemptions entered in the first Exemptions field. The amount of the credit is determined by multiplying the number of exemptions by $10.
How Vision Calculates Tax
To calculate an employee's Kentucky State tax, Vision 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 standard deduction and 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
- Calculates the computed tax by applying Tax Calculation Method 1 to the taxable income.
- Subtracts a credit, if applicable, from the computed tax to determine the net income tax.
- 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.