Massachusetts State Tax Deduction amount has changed from last payroll

The deduction amount for Massachusetts State Tax has increased for some employees from last paycheck to this paycheck. 

• Payroll Processing 

• Tax Tables 

Massachusetts state tax law has an exemption for certain other deductions (such as FICA and certain Retirement deductions) and once that exemption amount is reached MA state tax is a flat percentage of gross earnings. 

The deduction amount will change up to 3 times throughout the year; in the beginning of the year the full amount of the exemption is included in the first few payrolls of the year, it changes again when a portion close to the exemption amount applies but the employee has not met the full exemption amount and again when the full amount of the exemption has been met and all the gross wages are subject to the flat tax. 

To confirm deduction exemption threshold has been met  Payroll Detail History (Human Capital Management > Payroll > Employee History > Payroll Detail History) for this employee and the deductions listed on the MA Tax Table Calculations screen under Deduction Types that apply to the maximum allowable deduction amount in payrolls since the beginning of the year through to when the deduction

From the report, add up the total amount of those deductions that occurred prior to the state income tax deduction changing and confirm that amount is close to the exemption amount threshold. In the payroll in which the deduction amount changed, the amount of the exemption would be a portion of the remaining amount to reach the exemption threshold making the tax amount be different than the prior payroll. The deduction amount will change again when the exemption has been met completely and the deduction will remain the same after that.