Arkansas State Tax Routine (ARTX)
The Arkansas State Tax Routine Processing utilizes the following steps:
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Line 1 |
Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI). |
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Line 2 |
Determine the employee’s deductions:
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Line 3 |
Round off to (Mid range $50) on Taxable Amount in Line 3. |
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Line 4 |
Using Marginal Tax Rates (DEDX) entries for the Arkansas State Tax Routine deduction, compute tax on Taxable Amount (Line 4). |
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Line 5 |
Using the Marginal Tax Rates (DEDX) entries for the Alabama State Tax deduction, compute tax on the Taxable Amount (Line 4). |
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Line 6 |
Determine the employee’s Personal exemption credit
State Tax Allowance (TAX) multiply by Annual Exception Amount on TAXP. |
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Line 7 |
Subtract the total amount of the employee’s personal exemption credit (Line 6) from the computed tax (Line 5). |
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Line 8 |
Divide the amount on Line 7 by the number of payroll periods in a year to determine the employee’s Arkansas Withholding Tax for the pay period. |
* Determine the Personal Exemption Amount
Take the Annual Exemption Amount on the Tax Parameters (TAXP) entry for the employee’s Arkansas State Tax deduction and Marital Status * the number of State Tax Allowances on the employee’s Employee Tax Parameter (TAX).
Data Setup Considerations
Sites need to ensure that they have implemented the following Business Process/Data Setup changes at their site prior to using the Arkansas State Tax Routine.
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The Tax Parameters (TAXP) setup for Arkansas State Tax Deductions $2340.
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Personal exemption Amount $29 is captured as part of the Annual Exemption Amount.
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The Employee Tax Parameter (TAX) enrollment (Note: this only applies to employees enrolled in a Tax Class (TAXC) that includes a Arkansas State Tax Deduction).
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The State Tax Allowance field captures the employee's claim for the number of exemptions.
Note: The point 2 functions if the MULTI_STATE_TAX parameter is set to N as part of the Application Parameter (APPCTRL) page, if the parameter is set to Y, then the system functions as per point 3.
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Employees enrolled in the State Tax Enrollment (TAXS) (Note: this only applies to employees enrolled in the State Tax Class (TAXCS) that includes a Arkansas State Tax Deduction).
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The State Tax Allowance field captures the employee's claim for the number of exemptions.
