Alabama (AL)

2019 SWT

Instructions for Alabama State tax rates.

 

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Alabama (AL)

Step 1: Load the state withholding rates

Single

Married Filing Separately

Married Filing Jointly

Head of Family

Step 2: Verify the tax calculation formula

Step 3: Verify the calculation settings

Single

Married Filing Separately

Married Filing Jointly

Head of Family

Step 4: Verify the pay code settings

Step 1: Load the state withholding rates

Use the amounts displayed in the following table to update the Calculation table with the state withholding rates and modifiers.

Alabama State Withholding tables:

 

Single

Table 1: 2019 Alabama State Withholding - Single

Line No

Wages Not Over

Tax Amount

Tax Rates

1

500.00

0.00

2.00%

2

3,000.00

10.00

4.00%

3

999,999,999.99

110.00

5.00%

 

Do this...

1.  Open Connect Payroll > Organization > Calculation Tables

2.  Click Alabama Single 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, the cursor displays in the Tax Rate field.

The next row of information displays.

7.  Repeat steps 1 to 6.

Alabama - Single

8.  Click the Modifiers tab

Alabama - Single, Modifiers 1 to 10

Alabama - Single, Modifiers 11 to 12

2019Jan08

Married Filing Separately

Table 2: 2019 Alabama State Withholding - Married Filing Separately

Line No

Wages Not Over

Tax Amount

Tax Rates

1

500.00

0.00

2.00%

2

3,000.00

10.00

4.00%

3

999,999,999.99

110.00

5.00%

 

Do this...

1.  Open Connect Payroll > Organization > Calculation Tables

2.  Click Alabama Married Filing Separately 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, the cursor displays in the Tax Rate field.

The next row of information displays.

7.  Repeat steps 1 to 6.

Alabama - Married Filing Separately

8.  Click the Modifiers tab

Alabama - Married Filing Separately, Modifiers 1 to 10

Alabama - Married Filing Separately, Modifiers 11 to 12

Married Filing Jointly

Table 3: 2019 Alabama State Withholding - Married Filing Jointly

Line No

Wages Not Over

Tax Amount

Tax Rates

1

1,000.00

0.00

2.00%

2

6,000.00

20.00

4.00%

3

999,999,999.99

220.00

5.00%

 

Do this...

1.  Open Connect Payroll > Organization > Calculation Tables

2.  Click Alabama Married Filing Jointly 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, the cursor displays in the Tax Rate field.

The next row of information displays.

7.  Repeat steps 1 to 6.

Alabama Married Filing Jointly

8.  Click the Modifiers 1–10 tab

Alabama Married Filing Jointly, Modifiers 1 to 10

Alabama Married Filing Jointly, Modifiers 11 to 12

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Head of Family

Table 4: 2019 Alabama State Withholding - Head of Family

Line No

Wages Not Over

Tax Amount

Tax Rates

1

500.00

0.00

2.00%

2

3,000.00

10.00

4.00%

3

999,999,999.99

110.00

5.00%

 

Do this...

1.  Open Connect Payroll > Organization > Calculation Tables

2.  Click Alabama Head of Family 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, the cursor displays in the Tax Rate field.

The next row of information displays.

7.  Repeat steps 1 to 6.

Alabama Head of Family

8.  Click the Modifiers 1–10 tab

Alabama Head of Family, Modifiers 1 to 10

Alabama Head of Family, Modifiers 11 to 12

2019Jan08

Step 2: Verify the tax calculation formula

Update the calculation formula to use the new formula to calculate the state withholding rates.  

Do this...

1. Open Connect Payroll > Organization > Calculation Formulas.

2. Select the Alabama 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 Formula dialog box displays.

Replace Formula

6. Click Yes.

The Import Master form displays.

7. Select the Alabama State Withholding formula.

Import Master

The latest version of the calculation formula that is saved in the application displays on the screen.

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 = Round(WagesCurrPer,0)

Var2 = IIF(Var1 <= Modifier11, Modifier14, (IIF(Var1 >= Modifier12, Modifier13, 0)))

Var3 = IIF(Var2 = 0, Round((Var1-Modifier11)/Modifier15,0),0)

Var4 = IIF(Var3 = 0, 0, (Max(Modifier14 - (Var3 * Modifier16),0)))

Var5 = IIF(WagesCurrPer < Modifier5, Modifier2, IIF(WagesCurrPer > Modifier6, Modifier4, Modifier3))

Var6 = (Modifier1 * CurrentExemptions)+(Var5*CurrentAdditionalExemptions)

Var7 = WagesCurrPer - (FWT + Var2 + Var4 + Var6)

Result = Table(Max(Var7,0))

 

Does the formula in Payroll match the formula shown above?

Why can't I click any buttons? Check the Restricted Fields button on the toolbar. If it looks like a locked padlock, you'll need to click on the Restricted Fields button to unlock the restricted fields.


Restricted Fields button on the toolbar

To learn more, see the help topic titled How do I edit a restricted field?

 

9. Click Save.

You have finished updating the tax calculation formula for Alabama State Withholding.

2019Jan08

Step 3: Verify the calculation settings

Link the SWT calculation (Connect Payroll > Organization > Calculations) to the calculation formula, calculation table, and pay code type.

 

Alabama State Withholding tables:

 

Single

1. Open Connect Payroll > Organization > Calculations.

2. Select the Single – Alabama State Withholding calculation.

3. Verify the Single - AL SWT is the Abbreviated Calculation Name.

4. Select Alabama State Withholding for the Calculation Formula.

5. Select AL Single as the Calculation Table.

6. Select State Withholding for the Pay Code Type.

7. Click Save (CTRL+S).

 

Married Filing Separately

1. Open Connect Payroll > Organization > Calculations.

2. Select the Married Filing Separately – Alabama State Withholding calculation.

3. Verify the Married Separately - AL is the Abbreviated Calculation Name.

4. Select Alabama State Withholding for the Calculation Formula.

5. Select AL Married Filing Separately as the Calculation Table.

6. Select State Withholding for the Pay Code Type.

7. Click Save (CTRL+S).

 

Married Filing Jointly

1. Open Connect Payroll > Organization > Calculations.

2. Select the Married Filing Jointly – Alabama State Withholding calculation.

3. Verify the Married Jointly - AL is the Abbreviated Calculation Name.

4. Select Alabama State Withholding for the Calculation Formula.

5. Select AL Married Filing Jointly as the Calculation Table.

6. Select State Withholding for the Pay Code Type.

7. Click Save (CTRL+S).

 

Head of Family

1. Open Connect Payroll > Organization > Calculations.

2. Select the Head of Family – Alabama State Withholding calculation.

3. Verify the Head of Family - AL is the Abbreviated Calculation Name.

4. Select Alabama State Withholding for the Calculation Formula.

5. Select AL Head of Family as the Calculation Table.

6. Select State Withholding for the Pay Code Type.

7. Click Save (CTRL+S).

 

Step 4: Verify the pay code settings

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 Nearest Dollar.

The Round Amounts to Nearest Dollar checkbox should be selected on the Employee subtab, like this...

 

Round Amounts to Nearest Dollar in Pay Codes

Note: This screenshot shows the Round Amounts to Nearest Dollar checkbox on the Employee subtab. The rest of the options on pay code 77-00 State Withholding Tax will be set up for your state's withholding tax and may not look exactly like the fields that are shown here.

6. Click Save (CTRL+S).

The state withholding pay code is set up correctly. You’re done!

2019Jan07