Vermont State Tax Routine (VTTX)
The Iowa State Tax Special Routine Processing utilizes the following steps:
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Line 1
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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 Withholding Allowance Amount for the employee*. |
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Line 3 |
Determine the Taxable Amount by subtracting Line 2 from Line 1. |
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Line 4 |
Using the Marginal Tax Rates (DEDX) entries for the Vermont State Tax deduction, compute tax on the Taxable Amount (Line 3). |
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Line 5 |
Divide the amount on Line 4 by the number of payroll periods in a year to determine the employee’s Vermont Withholding Tax for the pay period. |
*Determine the Withholding Allowance Amount (Line 2)
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Take the Annual Exemption Amount on the Tax Parameters (TAXP) entry for the employee’s Vermont State Tax deduction and Marital Status * the number of State Tax Allowances on the employee’s Employee Tax Parameter (TAX) or Employee State Tax parameter (TAXS).
Note: The Vermont State Tax Routine is only available for sites that utilize the Next Generation Payroll service.
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 Vermont State Tax Routine.
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Tax Parameters (TAXP) setup for Vermont State Tax Deductions a. The Annual Exemption Amount field is mapped with the Withholding allowance Amount (Annual pay period- $4,850).
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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 Vermont State Tax Deduction).
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The State Tax Allowance field captures the employee's claim for number of allowances for the withholding allowance amount.
Note: The point 2 functions if the Application Parameter (APPCTRL) MULTI_STATE_TAX parameter is set to N, if the parameter is set to Y, then the system will function as per the point 3.
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The employee enrolled in the State Tax Enrollment (TAXS) (Note: this only applies to employees enrolled in a State Tax Class (TAXCS) that includes a Vermont State Tax Deduction).
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The State Tax Allowance field captures the employee's claim for number of allowances for the withholding allowance amount.
