Knowledge Base

How Do I Update My Massachusetts Tax Tables?


Where do I find the tax tables?

For MA tax withholdings, you will need to refer to the "Guide to Withholding of Taxes on Wages" from the MA Department of Revenue website.

Which tables do I use?

Use the "Percentage Method" described in the guide for determining withholding amounts. This method uses a flat percentage for calculating state taxes after deducting Social Security and Medicare taxes, a standard deduction, and any personal exemptions.

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 - 2012 Percentage Method

How to setup/update the tables in PowerChurch Plus

To setup/update PowerChurch Plus for MA tax tables, select the Accounting menu, Payroll, Setup, then Maintain Tax Tables.

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

  • Description: Enter a unique name to identify the tax table (for example, "MA State Tax").
  • Tax type: The type of tax in which this table applies. In this instance, select State Tax.
  • Standard deduction: Enter the standard amount which is part of the "Exemption amount calculation" shown in Figure 1.
  • Withholding allowance: Enter the annual amount to be multiplied by the number of exemptions claimed.
  • Social security/medicare limit: The Social Security and Medicare taxes are deducted from wages only up to an annual maximum limit.
  • Tax rate:
  • Round tax to nearest whole dollar: If required, check this box to round the calculated tax amount to the nearest whole dollar.

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


Figure 2 - MA State Tax Table (2012)

Note: An additional amount is subtracted from the withholding if the taxpayer is filing as head of household and/or the blindness exemption is claimed. The amount to subtract is shown in a table under the "Percentage Method" instructions (see Figure 3 for an example). This amount can be entered as a negative into the Additional Withholding field when you setup the MA State tax item for the employee.

Figure 3 - MA Additional Withholding Table

This article applies to the following PowerChurch versions:
PCPlus V 11/11.1, PCPlus V 11.5/11.55, PowerChurch Online

Keywords:
state tax table, tax table, taxes

Created: 12/03/2009
Last updated: 04/08/2015