Utah State Tax Routine (UTTX)

The Utah State Tax Special Routine Processing utilizes the following steps:

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).

Line 2

Multiply line 1 by the income tax rate defined as part of the Marginal Tax Rates (DEDX) page for the respective marital status.

Line 3

Determine the employees’ Base Tax Allowance.

Line 4

Deduct the Annual Exemption Amount from Line 1.

Line 5

Multiply Line 4 by the base tax rate.

Line 6

Deduct value of Line 3 from the value of Line 5.

Line 7

Arrive at the withholding tax by deducting Line 2 from Line 6.

Line 8

Divide the amount on Line 7 by the number of payroll periods in a year to determine the employee’s Utah Withholding Tax for the pay period.

Note: The Utah State Tax Routine is only available for sites that utilize the Next Generation Payroll service.

Data Setup Considerations

The following configuration steps are required to be followed to calculate the Utah tax calculation in Advantage:

  1. The Tax Parameters (TAXP) setup for Utah State Tax Deductions.

  1. The Annual Exemption Amount  is the Annual Exemption Amount.

  2. The Base Tax Amount is the Minimum Standard Deduction.

  3. The Base Tax Rate is the Rate.

  1. The Income tax Rate is established on the Marginal Tax Rates (DEDX) reference page.