Deduction Calc Code 07 - Tax Table Plus Percent

How does a Deduction Calc Code 07-Tax table Plus Percent work? 

What is the calculation a calc code 07 performs for taxes?

• Payroll
• Deduction and Benefit Master
• Employee Deductions
• Tax Tables
• Payroll Control Settings
• Payroll Start and Status
• Earnings and Deductions 

The Tax withholding will calculate as usual depending on the employee's setup, payroll control settings, tax table setup, etc. 

Use Master Article - Proving out Federal Income Tax Withholdings Calculations in Payroll

Once the withholding amount is calculated, the 07 calc code will then find the percent of the withholding amount and will then add that to the withholdings. 

Example:

1. An employee's Federal tax withholdings calculate as 241.00 using the typical process.
2. The employee's Deduction record is using a calc code 07 with 3 defined in the Employee Amt/Pct field. 
3. 3% of 241.00 is 7.23. 
4. The 7.23 gets added to the 241.00 withholdings. 241.00 + 7.23 = 248.23.
5. 248.23 will be the Employee's Withholding amount in payroll.