Tax Tables for state of Alabama

[bobfree]

We have been using the membership module of Power Church, Ver 9, for sometime and are just now in the process of putting the accounting module in place.
One of the major questions I have at this time is:
Is there a simple way of setting up the tax tables in the payroll module for the state of ALabama. They have a formula to use for determining the taxable amount and then use precentages to compute withholding. The process to determine taxable income involves a 20% reduction off the top, then reduce by the amount of Federal Withholding, then reduction for personal exemptions and finally reduction for dependents. All this to get the taxable amount and then apply the precentages.
Does a manual calculation have to be made for each employee, aftrer Federal withholding is calcualted, and entered into the exempt field for withholding calcualtions or is there any way to automate any of this process?

Thanks
Bob

[Matt]

Bob,

Unfortunately, the Payroll module of Powerchurch is not set up to correctly compute the withholding tax amount for some states, due to the complexity of that state's formula. Alabama is one of those states. Iowa is another. The main problem, as you state, is that the Federal withholding amount needs to be factored in the calculation of the state withholding amount. PowerChurch has no mechanism to take the Federal withholding amount calculated and automatically add it into the Exempt field for the State withholding calculation. I recommend that you submit the need for PowerChurch to correctly compute the Alabama withholding tax to PowerChurch as a Wish List item for a future release.

Matt

[uumontgomery]

We've just started using Power Church and I'm now working on the payroll module. Has anything changed about Alabama State taxes since you wrote this message in 2005? If not, how are you handling this problem?

Thanks,
Amy

[Matt]

Nothing has changed since my post last year. I also made a recommendation that this functionality be added to the v. 10 release that will be coming out soon. However, so far I haven't heard or seen anything. In the meantime you will need to use the Alabama withholding booklet to look up the proper withholding amount and manually plug that amount into the Payroll module of PC+ for each employee.