Puerto Rico Tax
For Puerto Rico residents, you specify the employee's status and exemptions.
Deltek Modification Date - 1/24/14
Enter the following field information for residents of Puerto Rico on the Withholding grid on the Payroll tab of the Employee Info Center:
Automatically Calculated Variables
Vision automatically computes the following variables.
Optional Standard Deduction
The optional standard deduction is based on the employee’s filing status. The following amounts are used:
Status | Deduction |
---|---|
S or A | $3,500 |
1 or B | $7,000 |
2 or 3 and C or D | $3,500 |
4 or E | $0 |
A - E (Additional for Veterans) | $1,500 |
Allowance
The allowance is based on the number of exemptions in the first Exemptions field. It is determined by multiplying the number of exemptions by $2,500.
Deduction for Allowances
The deduction for allowances is based on the number of exemptions entered in the Other Exemptions field. It is determined by multiplying the number of other exemptions by $500.
How Vision Calculates Tax
To calculate an employee's Puerto Rico 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 optional standard deduction, allowance, deduction for allowances, and any 401(k) plan contributions from the employee's annualized gross wages to determine taxable income.
- Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
- 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.