Larman
07-11-2009, 05:45 PM
So I downloaded Peachtree's tax formulas and ran a test payroll check. I can't follow how the Peachtree maintained state tax formula arrives at the answer it does. If my employee has a gross annual income of 12,662 for example, using the information provided by the State of Maine it looks to me like I should have withholding of about 4.62. From the Maine tax tables booklet-
"If the annualized income is: The annualized withholding is:
$ 6,650 but less than $16,800 2.0% of excess over $ 6,650"
...So Bi-Weekly wage of $487 x 26 weeks = 12,662 adjusted gross minus 6,650 = 6,012 x 2% = 120.24 / 26 weeks = 4.62
The Peachtree maintained formula is:
Y = TABLE (ANNUAL (ADJUSTED_GROSS) - (EMP_STATE_ALLOWANCES *
2850));
Z = IF(Y<=40,0,PRORATE (-Y));
ANSWER = INT (Z - 0.5)-EMP_STATE_NUMBER "Round to the nearest dollar"
This yields a withholding result of $39.00. I've checked and double checked the amounts in the table and they match exactly the amounts in the state tax booklet as far as the gross amount, deduction amount and percentage. I've looked at that formula every way from Sunday and don't understand what it is doing. When I use the State's calculation method, I come up with an amount very close to the 4.62 amount above. Any ideas?
Dave Gideon,
President
Building Controls LLC:confused:
"If the annualized income is: The annualized withholding is:
$ 6,650 but less than $16,800 2.0% of excess over $ 6,650"
...So Bi-Weekly wage of $487 x 26 weeks = 12,662 adjusted gross minus 6,650 = 6,012 x 2% = 120.24 / 26 weeks = 4.62
The Peachtree maintained formula is:
Y = TABLE (ANNUAL (ADJUSTED_GROSS) - (EMP_STATE_ALLOWANCES *
2850));
Z = IF(Y<=40,0,PRORATE (-Y));
ANSWER = INT (Z - 0.5)-EMP_STATE_NUMBER "Round to the nearest dollar"
This yields a withholding result of $39.00. I've checked and double checked the amounts in the table and they match exactly the amounts in the state tax booklet as far as the gross amount, deduction amount and percentage. I've looked at that formula every way from Sunday and don't understand what it is doing. When I use the State's calculation method, I come up with an amount very close to the 4.62 amount above. Any ideas?
Dave Gideon,
President
Building Controls LLC:confused: