Paul Mayer
11-19-2008, 06:58 PM
Special Tax instructions for Indiana effective October 1, 2008
In PayWindow we will change the “Exemption Amount Per Dependent" to be $500.00 to cover the $1,000.00 and $1,500.00 exemptions from lines 5 and 6 of the Form WH-4 from Indiana.
Since each exemption on line 5 is a $1,000.00 exemption, you will double the number and use it along with the result of the next paragraph.
And since each exemption on line 6 is a $1,500.00 exemption, you will triple that number and add it to the number you got in the above paragraph.
So if you have say 5 on line 5 of the WH-4 form making the number of exemption to be 10 would satisfy the requirement of 5 X 1000.
And if you have say 2 on line 6 of the WH-4 Form, you would triple the 2 and the result 6 to the above 10. That would satisfy the 2 X 1500.
So by having the exemption amount set to $500 and the number of 16 entered in the employee for state dependants, you will get 16 X 500 = 8,000.00
The above is the same as (5 X 1000 = 5000) + (2 X 1500 = 3000) for a total “annual†exemption of 8,000.00 needed for PayWindow.
Let’s look at how we set this up in PayWindow with screenshots.
In PayWindow from the top menu select Tools, then State Tax Table and double click on Indiana in the list to open for edit. Then in the "State II" Tab, change the "Exemption Amount Per Dependent" to be $500.00 like you see below. Then save and close the state tax record.
http://zpay.com/images/IndianaTax1.jpg
Then from the top menu, select Tools, then Local Tax Table and click on the Plus button to add a new tax record for your county. You can create multiple county tax records if you have multiple county needs.
http://zpay.com/images/IndianaTax2.jpg
Then enter the county name (we used Adams county in our example), the year and month you created it to reference later if there are changes to the county tax, check the box “Gross†as shown below and enter the tax percent. Note that you must convert the number given by Indiana which is a calculator number to a percent by moving the decimal point over two places. In this case, the number given by Indiana for Adams County is 0.01124 and converted to a percent is 1.124% as shown below.
165
Then open the Local II Tab and enter $500.00 in the "Exemption Amount Per Dependent" field and check the box to subtract before the calculation as shown below. Then save and close the local tax record.
http://zpay.com/images/IndianaTax4.jpg
Next you will attach the appropriate tax records to the appropriate employees and enter the State exemption number for the employee. Below under the Pay Tab of the employee edit screens we see where to enter that number we worked out from the Form WH-4 .
http://zpay.com/images/IndianaTax5.jpg
Then under the Deductions / Taxes Tab, select the appropriate County tax record for the employee.
http://zpay.com/images/IndianaTax6.jpg
Repeat as needed for all employees.
In PayWindow we will change the “Exemption Amount Per Dependent" to be $500.00 to cover the $1,000.00 and $1,500.00 exemptions from lines 5 and 6 of the Form WH-4 from Indiana.
Since each exemption on line 5 is a $1,000.00 exemption, you will double the number and use it along with the result of the next paragraph.
And since each exemption on line 6 is a $1,500.00 exemption, you will triple that number and add it to the number you got in the above paragraph.
So if you have say 5 on line 5 of the WH-4 form making the number of exemption to be 10 would satisfy the requirement of 5 X 1000.
And if you have say 2 on line 6 of the WH-4 Form, you would triple the 2 and the result 6 to the above 10. That would satisfy the 2 X 1500.
So by having the exemption amount set to $500 and the number of 16 entered in the employee for state dependants, you will get 16 X 500 = 8,000.00
The above is the same as (5 X 1000 = 5000) + (2 X 1500 = 3000) for a total “annual†exemption of 8,000.00 needed for PayWindow.
Let’s look at how we set this up in PayWindow with screenshots.
In PayWindow from the top menu select Tools, then State Tax Table and double click on Indiana in the list to open for edit. Then in the "State II" Tab, change the "Exemption Amount Per Dependent" to be $500.00 like you see below. Then save and close the state tax record.
http://zpay.com/images/IndianaTax1.jpg
Then from the top menu, select Tools, then Local Tax Table and click on the Plus button to add a new tax record for your county. You can create multiple county tax records if you have multiple county needs.
http://zpay.com/images/IndianaTax2.jpg
Then enter the county name (we used Adams county in our example), the year and month you created it to reference later if there are changes to the county tax, check the box “Gross†as shown below and enter the tax percent. Note that you must convert the number given by Indiana which is a calculator number to a percent by moving the decimal point over two places. In this case, the number given by Indiana for Adams County is 0.01124 and converted to a percent is 1.124% as shown below.
165
Then open the Local II Tab and enter $500.00 in the "Exemption Amount Per Dependent" field and check the box to subtract before the calculation as shown below. Then save and close the local tax record.
http://zpay.com/images/IndianaTax4.jpg
Next you will attach the appropriate tax records to the appropriate employees and enter the State exemption number for the employee. Below under the Pay Tab of the employee edit screens we see where to enter that number we worked out from the Form WH-4 .
http://zpay.com/images/IndianaTax5.jpg
Then under the Deductions / Taxes Tab, select the appropriate County tax record for the employee.
http://zpay.com/images/IndianaTax6.jpg
Repeat as needed for all employees.