Sage MAS 90 Payroll Tech Tips from DSD

DSD Sage MAS 90 Tech Tip 18-Arizona State Income Tax Minimum $5.00/Month Sage MAS 90 Workaround

Arizona 2003 Tax Tables have a minimum $5.00 per month rate.  Sage MAS 90 and Sage MAS 200 Payroll cannot automatically calculate the Arizona 2003 $5.00 withholding.

Here is the Sage suggested workaround for setting up the minimum $5.00 per month 2003 Arizona tax withholding.

If the annual compensation is less than $15,000 the minimum $5.00 per month (or a proportionate rate for any shorter pay period) withholding applies to all employees, even those who have no federal withholding. For further Arizona State Withholding information please contact the taxing authority directly.

To enter this tax in Sage MAS90, MAS200:

1. In the Payroll Module/Main Menu/ Employee Maintenance

2. Select the employee that needs to have the minimum $5.00 per month deducted.

3. Go to the Wages tab and click on the Tax Status button.

4. Under the state of Arizona select Fixed Amount in the Override W/H Tax Calc

5. You will need to put a fixed amount into the Override Amount field

Example: Employee receives 4 checks per month: 4/$5.00=$1.25

Note: Sage MAS 90 and Sage MAS 200 will not calculate this amount and it will need to be maintained manually. If the employee receives 5 checks that month the Override Amount field will need to be adjusted. If the employee receives an increase in pay and no longer is eligible for the minimum amount the override amount will need to be stopped.