How to calculate California state income tax

Owned by Knowledge Assistant
Mar 19, 2021
Description of Issue

I need assistance proving out California state income tax.

Context
  • Munis
  • Tax Tables
  • Payroll Start and Status
Cause


Resolution
  1. Find the Deduction Gross from Earnings and Deductions on the state income tax deduction by double clicking on the state income tax deduction
  2. Multiply it by the employee’s number of pays of the base pay in Employee Job/Salary
  3. Open Tax Tables: Payroll > Payroll Setup > Income Tax Setup > Tax Tables
  4. Search on the employee's applicable tax table
  5. Select Calc in the menu
  6. Subtract Standard Deduction amount from Tax Table
  7. Using the new total, find what level this taxable wage falls in
  8. Subtract the amount from the Over field from Tax Table
  9. Multiply by % from Tax Table
  10. Add the +/- amount from Tax Table
  11. Subtract exemptions
  12. Divide by the number of pays from Employee Job/Salary
Additional Information

(Deduction Gross) x (# pays (job/salary)) - (Standard Deduction) - (amount from Over field from tax table) x (% from tax table) + (+/- amount from tax table) - (Exemptions) / (# pays)