Select the filing status for this Tax Code. This allows you to define different deduction amounts for the Tax Code based on the filing status. Select the filing status for the Code.

If you’re setting up your codes manually (not through the Denali tax update), be sure to set up enough codes to meet the new W-4 rate schedules.

From the drop-down, select whether or not the Tax Code requires you to calculate taxes on an amount that has had a percentage of federal withholding deducted from earnings.

You can select None, Yes, Alabama, Utah, or Wisconsin.

Alabama uses a different method to calculate withholding amounts, and Utah uses the Low Income Exemption amount differently than other states; the software accounts for these differences.

If you selected Yes, Alabama, Utah, or Wisconsin from the Use Deduct F Method drop-down, enter the federal deduction percentage. This field defaults to 100% if you select Alabama.

If you selected Yes, Alabama, Utah, or Wisconsin from the Use Deduct F Method drop-down and a minimum is required, enter the minimum annual amount that must be deducted.

If you selected Yes, Alabama, Utah, or Wisconsin from the Use Deduct F Method drop-down and a maximum is required, enter the maximum annual amount that can be deducted.

If the tax agency allows a standard deduction, enter the percentage. The percentage is deducted from earnings pre-tax.

If you deduct a dollar amount from earnings before applying the standard deduction, enter the annual amount here.

Enter the dollar amount defined by your tax agency as a low income exemption.

Enter the amount determined by the tax agency to be used in the standard deduction calculation. The calculation is provided by your state.

If there is a minimum annual amount that must be deducted before calculating taxes, enter the dollar amount.

If there is a maximum annual amount that can be deducted before calculating taxes, enter the dollar amount.

Enter the percentage of earnings from which taxes are withheld.

From the drop-down, select how you want to use the tax credit amount for this Tax Code. If you select Credit amount, the amount in the Tax Credit Amount field is subtracted from the withholding calculation. If you select Credit amount times exemptions, the credit amount is multiplied by the number of exemptions on the employee record and then subtracted from the withholding calculation.

Enter any annual state tax credit amount attached to this Tax Code.

Enter any personal allowance amount required by the state.