Field Description - Tax - State Gross Income Over Amount
The Tax - State Gross Income Over Amount is the amount used to determine the State Base Amount to Withhold. There are up to six levels, indicating different cutoff points for the Gross Income Over Amount.
Tax Calculation Example - Maine Single Taxpayer:
If a single person's annual income is $10,3500.00...
Less exemption for one child = $2,850.00
Taxable Income = $10,3500 - $2,8500 = $7500.00
Gross Income Level = 2 (see table)
State Gross Income Over Amount = $6,850.00
State Base Amount to Withhold = $91.00
State Plus % of Excess Over Rate = 4.50%
$7,500.00 - $6,850.00 = $650.00 Excess Taxable Amount
Excess Taxable Amount $650.00 X % of Excess Over Rate 4.50% = Excess W/H Amount $29.25
Annual State Tax Withholding Amount = $91.00 + $29.25 = $120.25
Tips:
To determine the withholding amount for the paycheck, divide the annual withholding amount by the number of pay periods in the year.
This example is meant to illustrate how the tax table fields are used. Actual tax rates, limits, and calculations may vary from this example according to current state formulas.
This field is not applicable to all states.
For more information, see Understanding Tax Calculations.
Also Called: Wage Level
Where-Maintained: State Withholding Tax Table Maintenance - Maine (W/Hx02), State Withholding Tax Table Maintenance - Oregon (W/Hx05), State Withholding Tax Table Maintenance - Vermont (W/Hx03)
Where-Used: Tax calculations
Format: 6.2 numeric