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Select Payroll Setup menu > Tax Table Maintenance. In the Tax Table Maintenance window, click Filing Status. In the Filing Status window, click one of the following buttons:

• Click Surcharge Table to access the Calculate Surcharge Table window.

• Click Adjustment Table to access the Adjust Taxable Income Table window.

Surcharge tables are used only by certain states and localities that apply special surcharges to the calculated withholding tax amount. The surcharge either increases or decreases the withholding tax amount, depending on the base bracket (step) into which the taxable base falls.

If tax calculation step 1 (Percent of Federal) is selected and it precedes step S (Add Surcharge), the taxable amounts that appear are based on federal withholdings. If tax calculation step P (Percent of State) is selected and it precedes step S, the taxable amounts are based on state withholdings.

The surcharge is computed for each step independently of other steps. A surcharge amount is applied only if the taxable base amount falls within the At Least and But Less Than column amounts of one of the steps.

The Adjust Taxable Income table is used by states or localities requiring special adjustments of the taxable base prior to using the tax table calculations. These adjustments increase or decrease the taxable base depending on the bracket in which the taxable base falls.

If tax calculation step 1 (Percent of Federal) is selected and it precedes step A (Add Adjustment), the taxable amounts that appear are based on federal withholdings. If tax calculation step P (Percent of State) is selected and it precedes step A, the taxable amounts are based on state withholdings.

The adjusted taxable base is computed for each step independently of other steps. A base amount is adjusted only if it corresponds to a step in the Adjust Taxable Income table. If the base amount does not fall within any of the step limits, it is not changed.

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