The calculations below are completed to figure the amount withheld and/or expensed for an employee for a deduction defined with a Rate Type of Multiplier Percent.
1) Gross Wages X Tax Pay Periods Per Year (from Employment screen in Employee File) = Annualized Gross
2) ((Annualized Gross X Multiplier Rate) - Lower Limit, if applicable) / 1,000 = Monthly Amount
3) (Monthly Amount X 12) / Tax Pay Periods Per Year (from Employment screen in Employee File) = Payroll Amount
4) Payroll Amount X Rate Table Amount (as based on age of employee*) = Final Amount to be withheld or expensed
*The employee's age is based on the employee's birthday entered in the Birth Date field in the Employee File and the last day of the calendar year of the Check Date for the payroll calculation batch.