Maryland Tax
For Maryland residents, you specify the employee's tax locale, status, and exemptions.
Deltek Modification Date - 1/25/13
Enter the following field information for residents of Maryland on the Withholding grid on the Payroll tab of the Employee Info Center:
Supplemental Wages
Supplemental (bonus run) wages are taxed at 5.75% plus the county percentage rate.
Automatically Calculated Variables
Vision automatically computes the following variables.
Standard Deduction
The Standard Deduction is a variable deduction applied to all employees. It is 15% of the employee's annual gross wages, subject to a minimum of $1,500 and a maximum of $2,000.
Allowance
The Allowance is based on the number of exemptions entered in the first Exemptions field. It is determined by multiplying the number of exemptions by $3,200.
Low Income Exemption
The Low Income Exemption applies to employees whose annualized gross wages are less than but not equal to $5,000. No withholding is applied in this case.
How Vision Calculates Tax
To calculate an employee's Maryland 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, 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
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Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
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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.