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 tax rate defined as part of the DEDX page for the respective marital status.
Line 3	Consider base tax allowance of 390(for single)/780(for married) that is configured as part of Minimum standard deduction as part of the TAXP screen based on the respective marital status.
Line 4	Deduct Line 1 with 7774 for single / with 15548 for married marital status.
Line 5	Multiply Line 4 by standard rate of 0.013.
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.

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.

The annual exemption amount for both single and married individual is configured as part of the Annual Exemption field as part of the TAXP reference page.

Single- $7,774

Married- $15,548

Utah also has a base tax allowance amount, and the same is configured as part of the Maximum Standard Deduction field as part of the TAXP reference page.

Single- $390

Married- $780

The base tax rate of 1.3% is configured as part of the Rate field in the TAXP reference page.
An income tax rate of 4.95% is configured as part of the DEDX table.
The Employee Tax Parameter (TAX) enrollment (Note: this only applies to employees enrolled in a Tax Class (TAXC) that includes a South Carolina State Tax Deduction).

Note: Point 5 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 6.

Employee enrolled in the State Tax Enrollment (TAXS) (Note: this only applies to employees enrolled in a State Tax Class (TAXCS) that includes a South Carolina State Tax Deduction).