Four fields are available on the State Info layout of the Tax Authority Configuration detail screen (for Tax Authority Type = State) to support tiered supplemental earnings tax calculations.
Fields | Description |
Additional Supplemental Tax Rate | Specifies the additional tax rate to apply to supplemental earnings that exceed the Starting Wage threshold.
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Starting Wage | Sets the year-to-date earnings threshold at which the additional supplemental tax rate begins to apply.
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Starting Wage Basis | Annualized: Based on annualized earnings for the current pay period. Cumulative - All Wages: Uses year-to-date total taxable wages. Cumulative - Supplemental Wages Only: Uses only year-to-date supplemental earnings. |
Use State Details for Starting Wage and Suppl. Tax | When checked, the system uses employee-specific state tax details (deductions and exemptions) for calculating supplemental tax on amounts over the threshold. |