2018 SWT
Instructions for Montana State tax rates. Follow the instructions in this document to update the Montana State Tax tables in the Connect Payroll application with the Montana State Withholding Tax Rates.
In this Topic Hide
Use the amounts displayed in the following table to update the Calculation table with the state withholding rates and modifiers.
Table 1: MONTANA STATE WITHHOLDING RATES
|
Line No |
Not Over |
Tax Amount |
Tax Rate |
|
1 |
7,000.00 |
0.00 |
1.8% |
|
2 |
15,000.00 |
126.00 |
4.40% |
|
3 |
120,000.00 |
478.00 |
6.00% |
|
4 |
99,999,999.99 |
6,778.00 |
6.60% |
Do this...
1. Open Connect Payroll > Organization > Calculation Tables.
2. Select Montana State Withholding Tax Rates.
3. Enter the Not Over amount for the first row.
4. Enter the Tax Amount.
5. Enter the Tax Rate.
6. When you press Enter when the cursor displays in the Tax Rate field.
The calculation table looks like this.
State Rates–Calculation Table tab
8. Click the Modifiers tab.
9. Change the Exemption Amount to 1,900.00.
It will look like this when you’re done...
Montana (MT) State Tax Rate Modifiers
Updated 22Feb2018
Update the calculation formula to use the new formula to calculate the state withholding rates.
Why can’t I use Import Master List to update the calculation formula? That depends. If the latest software update includes the calculation formula for your state, you can use Import Master List to replace the existing calculation formula with the new one. But, if the update didn’t include the withholding calculation for your state, you will need to type in the formula by hand.
Do this...
1. Open Connect Payroll > Organization > Calculation Formulas.
2. Select the Montana State Withholding formula.
3. Click the Calculation Formula tab.
4. Click Modify.
Modify button
5. Click the Select button next to the Original Master field.
Select button
The Replace With Master dialog box displays.
Replace With Master dialog box
6. Click Yes.
The Import Master form displays.
7. Select the Montana State Withholding formula and then click OK.
Import Master form
The latest version of the calculation formula that is saved in the application displays on the screen.
State Withholding Master Formula
8. Review the calculation formula carefully.
You’ll want to make sure the calculation formula in the Payroll application looks exactly like the calculation formula, shown below.
VAR1 = Modifier1 * (CurrentExemptions + CurrentAdditionalExemptions)
VAR2 = MAX(WagesCurrPer - VAR1, 0)
Result = Table(VAR2)
Does the formula in Payroll match the formula shown above?
Yes, it matches. That’s good news.
No, it doesn’t match. Copy and paste the formula, displayed above, into the Formula field.
9. Click Save.
You have finished updating the tax calculation formula.
You’re done!
Updated 21Feb2018
Link the SWT calculation to the calculation formula, calculation table, and pay code type.
1. Open Connect Payroll > Organization > Calculations.
2. Use the field titled Calculation Name to enter: Montana State Withholding
Calculation Name in Calculations
3. Verify the Abbreviated Calculation Name: Montana SWT
Abbreviated Calculation Name in Calculations
4. Select the Calculation Formula: Montana State Withholding
Calculation Formula in Calculations
5. Select the Calculation Table: Montana State Withholding
Calculation Table in Calculations
6. Select the Pay Code Type: State Withholding
Pay Code Type in Calculations
Updated 22Feb2018
Check the pay code that calculates the state withholding tax to make sure it is set up correctly and it will round amounts to the nearest dollar.
Do this...
1. Open Connect Payroll > Organization > Pay Codes.
2. Use the field titled Pay Code to enter the State Withholding Pay Code.
Usually, the pay code for state withholding tax is pay code 77-00.
3. Click to select the Employee tab.
4. Click to select the Employee subtab.
5. Click to select the checkbox titled Round Amounts to the Nearest Dollar.
The Employee subtab should look like this...
Round Amounts to Nearest Dollar in Pay Codes
6. Click Save (CTRL+S).
The state withholding pay code is set up correctly. You’re done!
Updated 24Jan2018