Appendix D-Tax Setup Information > Federal Income Tax

Federal Income Tax

Note: For records on 5-2-2 Payroll Records that have the Payroll Type of 2—Bonus, Sage 100 Contractor calculates federal income tax using the published flat-rate.

Every employer must obtain a Form W-4, Employee’s Withholding Allowance Certificate, for each employee.

The Federal rules governing marital status are as follows:

Marital Status

Tax Table Used

1-Single

Single (Includes Head of Household)

2-Married

Married

3-Head of Household

Single (Includes Head of Household)

4-Married Separate

Single (Includes Head of Household)

5-Married Joint

Married

To set marital status on an employee for Federal Income Tax:

  1. Open 5-2-1 Employees.
  2. Using the data control, select the employee.
  3. Click the Calculations tab.
  4. In the Marital column, in the cell of the Federal Income Tax row, enter the marital status.
  5. On the menu bar, click File, then click Save.