Description of Issue

We have an employee who went from biweekly to weekly and it doesn't appear their State tax withholdings for Connecticut (CT) are calculating correctly. How can I prove out this calculation?

Context

Enterprise ERP
Payroll Start and Status
Earnings and Deductions
Tax Tables
Employee Job/Salary

Cause

Resolution

Go to Payroll Start and Status (Payroll>Payroll Processing>Payroll Start and Status) and Search for the warrant. Click Change. Click Earnings and Deductions.
Search for the employee. Click Accept. Click the Withholding tab and double click on the line for State Taxes (Deduction 4000).
On the Deduction Detail Screen note the Deduction Gross Amount.
1. 392.96
Go to Employee Job/Salary (Payroll>Employee Maintenance>Employee Job/Salary).
Search for the Employee. Click Accept and note the Pay Frequency and number of Pays field.
1. Weekly with 52 pays
Annualize salary. Multiply the Deduction gross by the number of pays
1. 392.96 x 52 = 20,433.92
Determine the employee's withholding code. Go into Employee Deductions (Payroll>Employee Maintenance>Employee Deductions) Search for the employee and deduction and note the Marital Status.
1. Filing Status 'A'
Go to Tax Tables (Payroll>Payroll Setup>Income Tax Setup>Tax Tables) and Search for the most recent Effective Dated table with the corresponding Marital Status.
Click Calc in the toolbar.
Click Exemptions in the toolbar.
Find if and where the employee lands on the table based on their annualized income.
1. 20,433.92 lands on the first line showing a 12,000 exemption.
Subtract any exemption amount from the annualized amount giving you the new taxable income.
1. 20,433.92 - 12,000 = 8,433.92
Click Return back to the Calc screen.
Determine where the new taxable income lands on the table.
1. 8,433.92 lands on the first line for, 3% for taxable income less than or equal to 10,000. So the annualized taxable income gets multiplied by the 3%. 8,433.92 x .03 = 253.0176
  1. If for example, the employee's amount was 25,000. Take the (10,000 x .03) + (15,000 x .05) = 300+750=10,5050.
  2. Another example, the employee's amount was high, 93,042.82. Take the (10,000 x .03) + (40,000 x .05) + (43,042.82 x .055) = 300+2000+2,367.36 = 4,667.3551
Click on Phase-out in the toolbar and find the row for the employee's taxable income.
1. Row for 8,433.92 is 0.00
Click Return and click on Recapture Amt in the toolbar.
1. The starting point is 200,000.00 and the example does not meet that so it would be 0.00
Add the withholding amounts from step 14, 15 and 16.
1. 253.02 + 0.00 + 0.00 = 253.02
Click Return. Click Credits in the toolbar. Find the row for the employee's taxable income.
1. Row for 8,433.92 is 0.00
Multiply the withholding amount in step 17 by 1 minus the decimal amount in step 18.
1. 1.0 x 253.02 = 253.02
Divide the result in step 19 by the number of pay periods.
1. 253.02 / 52 = 4.86

Additional Information

Browser not supported