How to calculate Vermont state income tax

How does Munis calculate Vermont state income tax?

• Munis
• Tax Tables

Vermont State Income Tax in the Deduction and Benefit Master is set up for a Tax Table Type of 01 - LIKE FEDERAL and to use annual tax table. Munis will perform the following calculation:

1. From within Earnings and Deductions, search for the employee, click the Withholding tab, click the State Tax deduction (4000) Click Accept.
2. Note the amount in the Deduction Gross field.
3. Go into Employee Job/Salary (Payroll>Employee Maintenance>Employee Job/Salary) 
4. Search for the employee. On the employee's base pay, note the amounts next to the Num Pays (number of pays) field. 
5. Multiply the Deduction Gross by the employee’s number of pays.
6. Open Tax Tables: Payroll > Payroll Setup > Income Tax Setup > Tax Tables, search on the employee's applicable tax table.
7. select Calc in the menu.
8. Subtract 4,300 for each dependent/exemptions the employee claims.
9. Click Tax Table.
10. Using the new total, find what level this taxable wage falls in.
11. Subtract the Over amount.
12. Multiply the total by the (+/-)% field.
13. Add the (+/-) amount.
14. Divide by the number of pays.