Michigan Tax
For Michigan residents, you specify the employee's exemptions.
Deltek Modification Date - 01/24/14
Enter the following field information for residents of Michigan on the Withholding grid on the Payroll tab of the Employee Info Center:
Automatically Calculated Variables
Vision automatically computes the following variables.
Special Exemptions
Michigan no longer uses the special exemptions allowance for tax calculation purposes. (This value was previously determined by multiplying the number of exemptions claimed in the Other Exemptions field by $1,900).
You can still enter a value in the Other Exemptions field on the Withholdings grid of the Payroll tab in the Employee Info Center. However, Vision will not use this value to calculate Michigan tax.
Allowance
The Allowance is determined by multiplying the number of exemptions claimed in the first Exemptions field by $4,000.
How Vision Calculates Tax
To calculate an employee's Michigan 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 allowance and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
- Calculates the net income tax by applying Tax Calculation Method 2 to the taxable income, using a percentage of 4.25%.
- 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.