Payroll DeltaFlex Product Suite

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1 Date: November 5, 2013 Information source(s): Websites: Office of the Comptroller of Maryland Tax Table Information - Maryland Payroll DeltaFlex Product Suite Employer_Withholding/Withholding_Tables/Percentage_Method.shtml Withholding_Tax_Facts/Withholding_tax_facts_2014.pdf Employee Entry and Tax Table Information for 2014 Maryland Income Tax Withholding Maryland uses a unique system of income tax withholding, where the tax tables are based on locallyestablished (rather than statewide) income tax rates. This document covers the settings you need to make within your Payroll system in order calculate the proper tax withholding amounts. Section 1: Payroll system settings to ensure the system will accommodate Maryland s unique system of jurisdiction-based tax tables. Section 2: Steps to implement the changed tax tables and rates. NOTE - This section includes separate tables for ONLY the jurisdictions that have been requested from us by our Maryland users. (Currently, this is Allegany and Garrett counties.) Should you require information for other jurisdictions not provided here, please contact us. Section 3: Steps regarding SDI / Worker s Comp. settings that, as far as we know, are common to all the different jurisdictions. Section 4: Changes to additional deduction/exemption amounts for employees. No matter which jurisdiction s tax tables are used for an employee, be sure to also follow these steps as well. These Maryland changes should be entered into your system before the first Payroll for 2014, or as soon as possible thereafter. You may discover different or updated information through your own research. If so, the DeltaFlex Support team would greatly appreciate hearing from you. The questions and prompts listed below are in the order that they appear within the software. Answers are supplied here only if the information was clearly provided by the information source noted above. (Information on Worker s Comp. is especially difficult to obtain. In cases where we could find no information on a certain item, we have listed??? as the answer. Use the existing settings already established in your payroll system. Check with the state taxing and/or labor bureau for information.) Marketron Broadcast Solutions [email protected] Updated: 1/7/20141/5/2013 Page 1

2 Section 1 - Payroll System Settings Maryland uses a unique system where the state tax table used depends on the jurisdiction where the employee s resides. In order for the Payroll system to accommodate this, be sure the following system control option is set correctly (it will most likely be set this way already.) From the Payroll System Editor, select #8 Other Changes to the Payroll System. Then select #2 System Control Options. Accept the existing, default answer for the first nine questions, until you arrive at the question asking the following: Will there be any time when an employee would pay state withholding taxes to one state, but use another state s tax tables to compute the withholding tax? Be sure to answer Y for yes. (The separate tax jurisdictions for Maryland are treated as if they are each a separate state, hence the reason for this answering this question this way.) Accept the existing, default answer for the remaining system control options. Marketron Broadcast Solutions [email protected] Updated: 1/7/20141/05/2013 Page 2

3 Section 2 - Changes to Tax Tables and Rates Next, proceed with updating the tax tables. Each of the following sets of information is labeled with the local tax percentage. The following chart (from Income_Tax/Employer_Withholding/Withholding_Tables/Percentage_Method.shtml) shows which rates apply to which jurisdictions. In most cases, you will use only the tables for the areas in which your employees reside. Worcester Nonresidents Talbot Anne Arundel Dorchester Garrett Caroline Calvert Cecil Washington Baltimore County Kent Frederick St. Mary's Charles Carroll Allegany Carroll Harford Somerset Baltimore City Howard Montgomery Prince George's Queen Anne's Wicomico NOTE - This section includes separate tables for ONLY the jurisdictions that have been requested from us by our Maryland users. (Currently, this is Allegany and Garrett counties.) Should you require information for other jurisdictions not provided here, please contact us. Section 3 of this document (next-to-last page) includes additional questions that are asked when editing the tax tables. This information, as far as we know, is the same for all the jurisdictions, thus we are printing it only once, in its own section. The tax tables for each jurisdiction begin on the next page. Again, please note the heading which tells the local tax percentage to which it applies. Marketron Broadcast Solutions [email protected] Updated: 1/7/20141/05/2013 Page 3

4 Tax Table Information for 2014 Maryland Income Tax Withholding table M6 2.65% Local Tax: Garrett From the Payroll System Editor, select #8 Other Changes to the Payroll System. Then select #9 Tax Tables. Next, select the number for this state s tax table. Full Name of Table: Maryland w/2.65% 2-Letter Abbreviation: M6 Type of Table: 1 - state Enter your State Identification Number. Federal Tax Liability is: 3 - not included Should the tax amount be rounded to the nearest dollar?: N Date this table was created or modified: {Enter today s date} Number of deductions needed before single person can use the married tax table: 70 Standard deduction amount for the married table: 0 Standard deduction amount for the single table: 0 Is there a deduction amount in addition to the standard deduction amount?: Y Enter the number for the first method: 4 Enter the number for the second method: 2 Enter the number for the third method: 0 Enter the number for the first after method: 0 Enter the number for the second after method: 0 Does this table have a maximum limit on the taxable gross in any 1 year?: N Maximum taxable gross amount for state unemployment:??? Marketron Broadcast Solutions [email protected] Updated: 1/7/20141/05/2013 Page 4

5 Maryland w/2.65% local Tax Table for Employees filing MARRIED (Married Filing Jointly or Head of Household) Brk Maximum $ #1 5, #9 #2 150, #10 #3 175, , #11 #4 225, , #12 #5 300, , #13 #6 999, , #14 #8 #16 Tax % Brk Maximum $ Tax % Maryland w/2.65% local Tax Table for Employees filing SINGLE (including Married Filing Separately or Dependent) Brk Maximum $ #1 5, #9 #2 100, #10 #3 125, , #11 #4 150, , #12 #5 250, , #13 #6 999, , #14 #8 #16 Tax % Brk Maximum $ Tax % The remaining on-screen questions are covered in Section 3, on the next-to-last page. Marketron Broadcast Solutions [email protected] Updated: 1/7/20141/05/2013 Page 5

6 Tax Table Information for 2014 Maryland Income Tax Withholding table M7 3.05% Local Tax: Allegany, Carroll From the Payroll System Editor, select #8 Other Changes to the Payroll System. Then select #9 Tax Tables. Next, select the number for this state s tax table. Full Name of Table: Maryland w/3.05% 2-Letter Abbreviation: M7 Type of Table: 1 - state Enter your State Identification Number. Federal Tax Liability is: 3 - not included Should the tax amount be rounded to the nearest dollar?: N Date this table was created or modified: {Enter today s date} Number of deductions needed before single person can use the married tax table: 70 Standard deduction amount for the married table: 0 Standard deduction amount for the single table: 0 Is there a deduction amount in addition to the standard deduction amount?: Y Enter the number for the first method: 4 Enter the number for the second method: 2 Enter the number for the third method: 0 Enter the number for the first after method: 0 Enter the number for the second after method: 0 Does this table have a maximum limit on the taxable gross in any 1 year?: N Maximum taxable gross amount for state unemployment:??? Marketron Broadcast Solutions [email protected] Updated: 1/7/20141/05/2013 Page 6

7 Maryland w/3.05% local Tax Table for Employees filing MARRIED (Married Filing Jointly or Head of Household) Brk Maximum $ #1 5, #9 #2 150, #10 #3 175, , #11 #4 225, , #12 #5 300, , #13 #6 999, , #14 #8 #16 Tax % Brk Maximum $ Tax % Maryland w/3.05% local Tax Table for Employees filing SINGLE (including Married Filing Separately or Dependent) Brk Maximum $ #1 5, #9 #2 100, #10 #3 125, , #11 #4 150, , #12 #5 250, , #13 #6 999, , #14 #8 #16 Tax % Brk Maximum $ Tax % The remaining on-screen questions are covered in Section 3, on the next-to-last page. Marketron Broadcast Solutions [email protected] Updated: 1/7/20141/05/2013 Page 7

8 Section 3 SDI/Worker s Comp. Questions for Each Tax Table These are the remaining questions asked for each tax table. How is the SDI / Worker's Comp. Employee Withholding Calculated?:??? (1=flat rate, 2=% x $, 3=% x hrs., 4= % x days, 0=no SDI3 - % multiplied by hours) Enter the percentages or flat amounts as supplied by your state for all of the Worker's Comp categories that you have set up. Remember that these amounts are for the employee portion of the withholding. Brk Category Name Percentage Brk Category Name #1 #9 #2 #10 #3 #11 #4 #12 #5 #13 #6 #14 Percentage Maximum taxable amount for SDI / Worker's Comp, if any:??? Is 401k exempt from this state withholding?:??? Are Cafeteria Plans exempt from this state withholding?:??? Is 401k exempt from unemployment in this state?:??? Are Cafeteria Plans exempt from unemployment in this state?:??? Is 401k exempt from SDI / Worker's Comp. in this state?:??? Are Cafeteria Plans exempt from SDI / Worker's Comp. in this state?:??? Marketron Broadcast Solutions [email protected] Updated: 1/7/20141/05/2013 Page 8

9 Section 4 - Changes to Additional Deduction/Exemption s No matter which jurisdiction s tax tables are used for an employee, be sure to follow these steps to implement these deduction/exemption changes. These steps involve making changes to each employee record. After completing changes to all the applicable tax tables, follow these steps to make the changes for each employee. We recommend you start by printing the List of Employees, Short Version to use as a simple checklist to ensure you change all appropriate employee records. From the Payroll System Editor, select #1 Enter/Change/Delete Employee Records. Enter the employee number. Then, select #4 Tax Information. When you come to the following prompts, enter the appropriate amounts. Screen prompt for first additional deduction/exemption amount: Maryland has a deduction/exemption amount which is the lower amount of a percentage of the gross or a deduction amount The employee deduction amount is: 1500 The employee percentage is: 15 Screen prompt for second additional deduction/exemption amount: Maryland has a deduction/exemption amount which is multiplied by the number of exemptions claimed by the employee The employee deduction amount is: 3200 Marketron Broadcast Solutions [email protected] Updated: 1/7/20141/05/2013 Page 9