Texas State Tax

Important! Although the State of Texas does not have state income tax, the state income tax calculation must be set up in the 5-3-1 Payroll Calculations window. Also, the state income tax calculation must be set up so that state wages can be tracked for other purposes.

Sage 100 Contractor still requires a marital status on the state tax calculation. Use the status that applies to each employee below. The state marital status has no effect on the amount of state withholding, and no state taxes will be computed.

Marital statuses
Status	Description
1-Single	Single Person
2-Married	Married
3-Head of Household	Head of Household
4-Married/Separate	Married Filing Separate
5-Married/Joint	Married Joint

To set up payroll calculations on an employee for Texas State Tax:

Open 5-2-1 Employees.
Using the data control, select the employee.
Click the Calculations tab.
In the Marital column, in the cell of the Texas Income Tax row, enter the corresponding marital status number.
In the Std Allow column, in the cell of the Texas Income Tax row, enter the number of exemptions/allowances claimed.
Click File > Save.