Calculation Methods for State Income Tax

You can use these calculation methods for state income tax (SIT).

Calculation method	Run type	Resident wage accumulatiom	What it does
Default	Regular	None or default	Calculates the tax based on the amount paid in the run.
Default	Regular	Credit Resident tax by Work tax, always accumulate wages	Calculates the resident tax. Reduces the tax by the amount of work tax withheld. It always accumulates wages for the residence, even if resident tax is $0.
Default	Regular	Credit Resident tax by Work tax, accumulate wages if taxed	Calculates the resident tax. Reduces the tax by the amount of work tax withheld. It accumulates wages only if it's withholding taxes.
Default	Regular	No resident tax if work tax greater than zero, always accrue	Doesn't withhold residence tax if there's a work tax, but it always accumulates wages.
Default	Regular	No resident tax if work tax greater than zero	Doesn't withhold residence tax if there's a work tax, and it only accumulates wages if there's a resident withholding.
Default	Regular	No resident tax if work tax on nonresident, always accrue	Doesn't withhold residence taxes if there's a work state tax. Wages accumulate for the residence.
Default	Regular	No resident tax if work tax on nonresident, accrue if taxed	Doesn't withhold residence tax if there's a work state tax. Wages only accumulate when there's a tax withheld.
Default	Regular	No resident tax if work or residence location mismatch, accrue if taxed	Calculates work tax only, and disregards resident tax.
Default	Regular	Calculate tax independent of all other jurisdictions	Calculates resident tax independent of work tax.
Aggregation	Supplemental	Refer to settings described in Regular runs	Takes the amount paid in a regular run and calculates the tax, independent of how many regular runs are in a pay period.
Alternate Flat Rate	Supplemental	Refer to settings described in Regular runs	Applies to California only for required 10.23% taxation on certain supplemental wages.
Annualized Previous Aggregations	Supplemental	Refer to settings described in Regular Runs	Combines the annualized Regular pay amount from the previous pay period with the Supplemental pay. Tax is calculated on this total amount. The state tax for Regular pay in the previous pay period is subtracted from the total taxes for the year to determine the tax for the current pay period.
Default Method	Supplemental	Refer to the setting described in Regular runs	Takes the amount paid in a regular run and calculates the tax, independent of how many regular runs are in a pay period.
Flat Rate	Supplemental	Refer to the settings described in the Regular runs	Multiplies the wages by a flat rate percentage.
Flat Rate Combined	Supplemental	Refer to the settings described in the Regular runs	Multiplies the Supplemental pay amount for the current pay period by a flat percentage. The tax on the Regular pay is calculated using the annualized method. The total tax is the sum of these two calculations.
Percentage of Federal Tax	Supplemental	Refer to the settings described in the Regular runs	Multiplies the federal supplemental tax amount by a flat percentage rate. This percentage is unique for each state that uses this method.
Tiered Flat Rate	Supplemental	Refer to the settings described in the Regular runs	Multiplies an employee's wages by a percentage rate. This percentage rate varies based on the amount of an employee's wages.
Tiered Flat Rate, Multiple Tables	Supplemental	Refer to the settings described in the Regular runs