Warning
Product support for the ended on September 30, 2020.
- Write Up CS
- Payroll CS
- Engagement CS
- Client Bookkeeping Solution
- Financial Analysis CS
Help & How-To Center content for the Creative Solutions Accounting platform may be outdated and is used at your own risk.
If a local jurisdiction requires you to compute variable standard deductions for employee withholding, use the Variable Deductions tab of the Local Tax Information dialog to enter or update the annualized rates and both the minimum and maximum deduction amounts. Payroll CS uses this information when calculating local withholding amounts during payroll check processing.
Choose Setup > System Configuration > Payroll Tax Information > Local. In the Local Tax Information dialog, select a locality and then choose the Variable Deductions tab.
See also: Local Tax Information dialog
Fields & buttons
Shows the name of the currently selected jurisdiction.
Shows the name of the currently selected state.
Shows the effective date for the current tax values for the selected jurisdiction (as specified on the General tab of the Local Tax Information dialog).
Choose the category you wish to update. The values in the remaining fields (in the Type 1 and Type 2 group boxes) are specific to the current selection.
(WAGES x <percent>) - <reduction amount>
- Enter the percentage by which to multiply wages for the selected category. Depending on the jurisdiction, the percentage may or may not differ among categories.
- Enter the amount to deduct from the result of the Wages x Percent calculation.
Example: If the reduction amount is $100.00 for a single employee with wages of $20,000.00 per year, and the percentage to use is 10%, the calculations would be
20,000 x .10 = 2,000
2,000 - 100 = 1,900
Thus, the standard deduction for the employee would be $1,900.00.
Minimum and Maximum
Enter both the minimum and maximum allowable standard deduction amounts for the selected category. Payroll CS will use the calculated deduction if it falls between these two amounts, otherwise it will use the specified limit amounts.
Be sure to enter both a minimum and maximum amount. If you leave the Maximum field blank, no deduction will be taken.
<percent> x (WAGES - (EXEMPTIONS x <exemption factor>) - <reduction amount>)
Enter the percentage, exemption factor, and reduction amount for the selected category. Depending on the jurisdiction, these values may or may not differ among categories.
Example: If the percentage to use is 15%, the exemption factor is $2,500.00, and the reduction amount is $3,900.00, the calculations for an employee making $30,000 per year with 2 exemptions would be
2 x 2,500 = 5,000
5,000 - 3,900 = 1,100
30,000 - 1,100 = 28,900
28,900 x .15 = 4,335
Thus, the standard deduction for the employee would be $4,335.00.
Minimum and Maximum
Enter both the minimum and maximum allowable standard deduction amounts for the selected category. Payroll CS will use the calculated deduction if it falls between these two amounts, otherwise it will use the specified limit amounts.
Be sure to enter both a minimum and maximum amount. If you leave the Maximum field blank, no deduction will be taken.