How Do I Update My District of Columbia Tax Tables?

How do I setup/update my District of Columbia Tax Tables?

Where do I find the tax tables?

For DC tax tables, you will need the current publication FR-230 "Income Tax Withholding Instructions and Tables" from the DC Department of Revenue.

Which tables do I use?

Use the percentage method for annual wages. Figure 1 shows an example.

Note that the figures shown in this document are for demonstration purposes only, and may not be current. Please consult the current publication for the most up-to-date information. Though the figures change periodically, the method of calculation should remain the same. If the calculation method has changed for this state please notify the webmaster.

Figure 1 - 2009 Annual Percentage Tables - Single or Married Filing Jointly

How to setup/update the tables in PowerChurch Plus

To setup/update PowerChurch Plus with the state tax table shown in Figure 1 above, select the Accounting menu, Payroll, Setup, then Maintain Tax Tables. Two separate rate tables will need to be created: one for single or married filing jointly, and one for married filing separately.

Click Add to enter a new table, or use the Find/Locate buttons to select an existing DC tax table to update. When adding a new table, you will be prompted for the type of tax table you're adding. Select State: Dist. of Columbia. For each table, enter the following information:

• Description: Enter a unique name to identify the tax table (for example, "DC State-Single/Married").
• Tax type: The type of tax in which this table applies. In this instance, select State Tax..
• Withholding allowance: Enter the amount for one annual withholding allowance. Again, found in publication FR-230 (see Figure 2).

Figure 2 - 2009 Annual Withholding Allowance

• Round tax to nearest whole dollar: Check this box to round the calculated tax amount to the nearest whole dollar.
• Annual Rate Table: Click the Annual Rate Table tab. From Figure 1 above, enter the figures under the "But not over" column, followed by the tax rate percentage for each bracket.
  

When you are done, the screen should look like this:

Figure 3a - DC State Single/Married Tax Table (Deduction and Exemption Information)


Figure 3b - DC State Single/Married Tax Table (Annual Rate Table)

Follow the instructions just described for the married filing separately table.