Knowledge Base

How Do I Update My Alabama Tax Tables?


Where do I find the tax tables?

For AL tax tables, you will need the current booklet "Withholding Tax Tables and Instructions for Employers" from the AL Department of Revenue.

Which tables do I use?

Use the "Formula For Computing Alabama Withholding Tax." Figure 1 shows an excerpt from these instructions.

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 - 2015 Formula For Computing Alabama Withholding Tax

How to setup/update the tables in PowerChurch Plus

To setup/update PowerChurch Plus for AL state tax tables, select the Accounting menu, Payroll, Setup, then Maintain Tax Tables. A separate table will need to be created for "0" or single (S), married filing separately (MS), married filing jointly (M), and head of family (H) exemption.

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

  • Description: Enter a unique name to identify the tax table (for example, "AL State Tax-Single").
  • Tax type: The type of tax in which this table applies. In this instance, select State Tax.
  • Standard deduction: Enter the amounts for the standard deduction formula. This is from step 2A of the "Formula For Computing Alabama Withholding Tax" (see Figure 2a). Only certain figures shown in Figure 2a are needed (notice the circled amounts). Figure 2b shows how it should be entered into PowerChurch Plus.

Figure 2a - 2015 Standard Deduction (0 or Single)


Figure 2b - Standard Deduction entered into PC+
  • Personal Exemption: Enter the appropriate amount from step 2C (see Figure 3). For example, $1500 for Single.

Figure 3 - 2015 Personal Exemption
  • Dependents: Enter the amounts for the dependent formula. This is from step 2D of the "Formula For Computing Alabama Withholding Tax" (see Figure 4a). Figure 4b shows how it should be entered into PowerChurch Plus.

Figure 4a - 2015 Dependent Exemption


Figure 4b - Dependent Exemption entered into PC+
  • Round tax to nearest whole dollar: If required, check this box to round the calculated tax amount to the nearest whole dollar.
  • Annual Rate Table: Click the Annual Rate Table tab and enter the maximum amount and percentage for each bracket. Figure 5a shows the table from step 5 of the "Formula For Computing Alabama Withholding Tax." Figure 5b shows how the amounts from table "S" should be entered into PowerChurch Plus. It is important to note that the maximum amount in the second bracket should be entered as $3000 and not $2500. This is because in Figure 5a the second bracket is expressed as the "next" $2500. In other words, the next $2500 after $500, which added together is $3000.

Figure 5a - 2015 Tax Rate Table


Figure 5b - Tax Rate Table "S" entered into PC+

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


Figure 6a - AL State Tax Single Table (Deduction and Exemption Information)


Figure 6b - AL State Tax Single Table (Annual Rate Table)

Follow the instructions just described for the married filing separately (MS), married filing jointly (M), and head of family (H) exemption.


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: 01/11/2019