Montana Tax
For Montana residents, you specify the employee's exemptions.
Deltek Modification Date - 1/14/05
Enter the following field information for residents of Montana on the Withholding grid on the Payroll tab of the Employee Info Center:
Automatically Calculated Variables
Vision automatically computes the Allowance based on the exemptions claimed by the employee.
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 $1900.
How Vision Calculates Tax
To calculate an employee's Montana 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 Allowance 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 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.
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Vision then rounds the withheld amount to the nearest whole dollar.