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ZIPPER Payroll, Version 1.75 -- README.DOC
This file contains information about installation, registration, tax
table updates, technical support, and revisions to the User's Manual.
There is also an appendix that covers special situations for several
states. Check this appendix to see if your state is included.
A NEW NAME
We have begun the process of changing our company name from SOFTCRAFT to
ZIPPER Brand Software. Throughout the printed documentation (.DOC files)
and other places you will see either name. Since the change has occurred
at about the same time this version was released, we have not attempted to
make all the changes necessary. Do not be confused by the use of either or
both names, and know that it is ONLY a change in the company name.
USER'S MANUAL
The complete ZIPPER Payroll user's manual is included on-disk as the file
ZIPPER.DOC. The ZIPPER Payroll User's Manual is an ASCII text file that
may be printed on your computer's printer. You can print this file with
the DOS "COPY" command:
COPY zipper.doc LPT1
where LPT1 represents the printer you wish to use (in this case parallel
printer #1). You may also use the DOS "PRINT" command:
PRINT zipper.doc
See your DOS User's Manual for more information about using either of
these commands.
Just a word of warning though, the complete ZIPPER Payroll User's Manual
is 183 pages in length.
HARDWARE
ZIPPER Payroll runs in the MS-DOS / PC-DOS environment (version 2.0 or
later). ZIPPER will run on the full family of IBM & Compatible PC's.
This means a PC, an XT, or an AT.
ZIPPER Payroll requires approximately 525K of RAM when it loads. If you
have less then this amount available, ZIPPER may still load, but
performance will be reduced. ZIPPER utilizes a 64K memory buffer for
processing (sorting, etc). If the full 64K is not available, ZIPPER will
use your disk drive for this memory space. This will make the program
noticeably slower, or it may not run at all. You should be able to run
ZIPPER Payroll if you computer has 640K of conventional memory, and you
do not have too many TSR (Memory Resident) programs or device drivers
loaded.
ZIPPER Payroll will use any type of color or monochrome monitor. ZIPPER
was designed with a color system in mind, and many of the data entry and
processing screens maximize the use of color by calling your attention to
important items.
It would not be reasonable to use ZIPPER Payroll without a printer.
ZIPPER supports the use of all printers by allowing you to enter the
control codes specific to your printer. ZIPPER supports printing through
three parallel ports (LPT1, LPT2, and LPT3), and two serial ports (COM1,
and COM2).
SHAREWARE
Shareware is a distribution method, not a type of software. Shareware
distribution gives users a chance to try software before buying it. The
author specifically grants the right to copy and distribute the software
only for the purpose of evaluation. With shareware you can find software
that suits your needs before you pay for it. With shareware you can try
before you buy. This is the ultimate money-back guarantee -- if you
don't like the program, and don't use the program, you don't pay for it.
If you try a shareware program and continue using it, you are expected to
register (pay for it).
The fee (usually just a few dollars) you paid to a shareware distributor
or vendor is not the registration fee. ZIPPER Brand Software, the author
of ZIPPER Payroll, does not receive any of the money you may have paid for
the shareware version of ZIPPER Payroll.
ZIPPER Payroll is a "shareware program". Feel free to share it with friends
or business associates. You may make any number of copies of your original
shareware distribution disk to share with others, but do not give away
copies that you have altered, or included as part of another system. YOU
MAY NOT MAKE PHOTOCOPIES COPIES OF THE ON-DISK USER'S MANUAL.
EVALUATION PERIOD
We feel that you should be reasonably able to evaluate this program in about
30 to 60 days. After you have processed payroll for 60 days, the program
will alert you to how long you have been using ZIPPER Payroll, and that your
ability to create payroll records after 90 days will not be allowed.
What exactly does this mean? It means that we recognize that to reasonably
evaluate this software you must be able to use it for some time. We also
recognize that it is not realistic to allow unlimited use for an indefinite
period of time. That is why we have limited your use to 90 days. Therefore,
ZIPPER Payroll will allow you to create payroll records for only a 90 day
period. We expect that after 90 days you should have had a reasonable
opportunity to come to some decision about your future use of ZIPPER
Payroll. At that point we expect you to either pay the registration fee
(so that you can continue using ZIPPER Payroll), or discontinue its use.
After the 90 day period you will still have full use of all program features
with the exception of being able to create more payroll. In order to do
that, you must pay the registration fee of $72.00 ($67.00, plus $5.00 for
shipping & handling). None of your data will be lost, and when you receive
the registered version you can continue to process payroll.
REGISTRATION
Registration of your evaluation copy of ZIPPER Payroll provides the
following benefits:
* The knowledge that you are helping to support a quality product.
Registration pays the author for the "thousands" of hours that went
into creating ZIPPER Payroll. Registration pays for this effort, and
allows us to improve and update the program.
* A printed User's Manual.
* The latest version of ZIPPER Payroll. This will include any updates,
improvements, and "bug" fixes.
* Tax table updates for the year following your initial registration.
* One year of some of the best technical support available anywhere,
at any price, for FREE.
* 8 FREE W-2 forms and a W-3 form (for Laser or Dot Matrix), AND low
cost pricing for additional forms (in the smaller quantities that
may be more to your liking).
A registration form is included with the on-disk User's Manual, or you
print a registration form from within ZIPPER Payroll. The registration
form and registration fee of $72.00 ($67.00 plus $5.00 for shipping and
handling) should be sent to:
ZIPPER Brand Software
(SOFTCRAFT)
3612 122nd Pl. SE
Everett, WA 98208
VOICE : (206) 728-8427
FAX : (206) 337-1842
INTERNET : edprotas@interserv.com
CompuServe : 71221,376
soon to be: Zipper_Brand
ZIPPER Brand Software BBS : (206) 337-7868
Registration payment may be handled by voice, fax, e-mail, or BBS.
Payment may be made by check, money order, or credit card (MasterCard,
VISA, American Express, or Discover).
Registration can be done online using the ZIPPER Brand Software BBS.
Read the file OUR_BBS.DOC to see how you can use the communications
software we have included with your shareware copy of ZIPPER Payroll
(that's right, you already have it) to connect to our BBS. You can
be connected and online in seconds (that's right -- SECONDS) if your
computer has a modem and it's connected to a phone line.
*** N E W S T U F F *** N E W S T U F F *** N E W S T U F F ***
We are currently at work on other payroll products. They "look and
feel" like ZIPPER Payroll, but provide many additional features and
capabilities. These products will have features like:
* JOB COSTING: This product will allow the creation of cost centers
(jobs, projects, departments, etc.) to which payroll can be allocated.
This feature is ideal for contractors who wish to allocate payroll
costs directly to specific jobs. This design will also work well for
restaurants, motels / hotels, services business's (anyone who wishes to
allocate job costs (payroll) to specific clients), etc. There is no
limit to the number of cost centers (jobs), and employee hours can be
allocated to an unlimited number of jobs. Job cost allocation also
allows allocation to unlimited SDI (State Disability Insurance) classes.
This is a must for Washington and other states where there are different
SDI rates (both employer liability & employee deduction) for different
kinds of work.
* GARNISHMENTS: What a pain! Not only do you have to calculate and
print checks for employees, but sometimes you are REQUIRED by law to
deduct things like child support (don't get me wrong, cause it's a
great idea that is long overdue) from an employees earnings, then issue
a separate check to some government agency. ZIPPER allows you to set
up individual garnishments / attachments / deductions (whatever you
wish to call it), and then have those "items" automatically deducted
from the employees earnings, AND have ZIPPER print the check to the 3rd
party involved. Does everything but lick the envelope an put on the
stamp.
* 1099's: This feature allows you to set up an "employee" as a 1099
type. This is ideal to use to pay "independent contractors". The
individual is paid (along with your regular payroll), no deductions are
taken (Federal / State Withholding / FICA / FUTA / SUTA), and a check
gets issued. At the end of the year ZIPPER Payroll allows you to issue
1099's for these individuals - and W-2's for all regular employees.
* DRAWS AGAINST COMMISSION: This feature is one that has been asked
for by employers who pay draws to their sales employees. The key
features of this modification is that it (1) Calculates and deducts all
normal withholdings against the amount of the draw, and (2) Maintains a
running balance of previous draws. The "Draw Balance" displays on
screen when you create payroll records. The amount "recovered" from
the draw is up to you, and recovered amounts automatically reduce the
draw balance, and calculate the proper taxes for draws and commissions.
* PAYROLL FREQUENCY OVERRIDE: This feature makes it easy to pay
bonuses or other large amounts without having to "adjust" the amount of
withholding.
* USE QUICKEN(tm) CHECKS: Allows you to use your Quicken check stock
to print paychecks from within ZIPPER. This is an additional feature
that adds to the current capability to export checks to Quicken.
* USER DEFINED (FLAT) TAX: This is a modification of the existing User
Defined Tax. The present structures allows a tax rate to be established
for the Employee (deduction) and/or the Employer (liability). The
modification allows a flat or fixed amount to be set as a deduction and/or
a liability. This accommodates locations like the City of Denver (CO) where
there is a flat city tax (not calculated on earnings).
* CAFETERIA PLANS: User definable pre-tax deductions.
If any of the above features interest you, then please give us a call.
If you have special payroll needs, please give us a call to tell us
what they are. We have customers running "special versions" of ZIPPER
Payroll that have been modified to their specific needs. We will
consider adding any feature that will benefit other users, as long as it
does not make the program difficult to use, or change the "look & feel"
of what so many users like most about this program - its ease of use!
* PRINTING TAX FORMS: Scheduled for inclusion are the 941, 940, 940EZ
*** M O R E *** M O R E *** M O R E ***
*** N E W S T U F F *** N E W S T U F F *** N E W S T U F F ***
Under final development is the Custom Reports Module. This feature will
allow the inclusion of additional reports (designed by you & programmed by
ZIPPER Brand Software) into your existing database. There will be a small
fee for the Custom Reports Module (additional software). Custom reports
will be additional. A "Professional Version / Site License" will be
available for CPA's/Accounting Professionals. The Pro version will allow
the Custom Reports Module to be used at all client sites. Custom reports
(and the cost of development) could then be shared by all clients.
One ideal application for this module would be the printing of individual
state quarterly / liability reports (using state supplied, pre-printed
forms) and quarterly Workman's Compensation Audit reports.
Your savings in time alone will pay for this module after the first round
of quarterly reports.
Please call about pricing & availability.
*************************************************************************
TAX TABLE UPDATES
The shareware version contains the tax tables that are up to date at the
time ZIPPER Payroll was released. Check the file date of the tax table
files (TAXTABL?.RBF). When you become a registered user of ZIPPER
Payroll you will receive the most current version of the tax tables along
with the most current program version. In addition, you will also
receive the next (usually annual) tax table update - FREE. After your
free update, you will have two options keep your tax tables up to date.
(1) A $35.00 annual fee for updates published by ZIPPER Brand Software, or (2)
Purchasing the ZIPPER Payroll Tax Table Editor for $49.00
(1) $35.00 Annual Maintenance: ZIPPER Brand Software maintains and updates
Federal & State tax tables as necessary throughout the year. As changes
are made by states or the IRS, ZIPPER Brand Software will provide updates to
affected users. The tax tables are then updated from within ZIPPER Payroll
from the SYSTEM MENU.
This method has a distinct advantage in that you do not need to try and
decipher changes as they are enacted by the various state agencies or the
Internal Revenue Service and then enter these changes into the various
field used by ZIPPER. This is a very low cost annual maintenance fee,
and you can be assured of timely updates and error free tax tables. This
is the method recommended by ZIPPER Brand Software.
(2) The ZIPPER Payroll Tax Table Editor: This option is provide for user
who simply do not like to pay an annual maintenance fee. By purchasing
the Tax Table Editor for a one time fee of $49.00, you can simply update
your own tax tables whenever they change - forever.
This method has a distinct advantage in that you only have to pay a
one time fee of $49.00 rather then the $35.00 annual fee. The
disadvantage is that it makes you responsible to monitor changes in the
federal tax rates (Federal Withholding, Federal Unemployment - FUTA,
Social Security, and Medicare), and also State Withholding, and then
accurately make the changes using the ZIPPER Payroll Tax Table Editor.
We generally do NOT recommend this method of updating the tax tables, but
have provided it in response to a number of ZIPPER Payroll users who would
prefer not to pay an $35.00 annual fee, or concern about what happens in
the unlikely event (hopefully) that I am run down by a bus or a bread
truck.
The ZIPPER Payroll Tax Table Editor comes with a User's Manual and our
usual (unlimited) technical support.
OK, so now you have a choice. Just remember that you won't have to make
this choice or pay any additional money right away; simply registering
ZIPPER Payroll and you get a second year of FREE tax tables.
CALENDAR FILES
ZIPPER Payroll uses 12 text files (ZIPCAL.1 through ZIPCAL.12) during
payroll processing. These files are displayed on screen when you are
selecting the Payroll Dates. Shareware versions contain the calendar
files for the year that the program was released. Having the wrong year
will NOT have any effect on payroll processing. Updated calendar files
will be provided FREE to registered users.
Others may get the current calendar files from the ZIPPER Brand
Software BBS. Read the file OUR_BBS.DOC to see how you can use the
communications software we have included with your shareware copy of
ZIPPER Payroll (that's right, you already have it) to connect to our BBS.
If you do not want to download the current calendar files, and prefer
not looking at last years calendar, you can simply delete the calendar
files (ZIPCAL.1 through ZIPCAL.12). The upper part of the screen will be
blank.
TECHNICAL SUPPORT
We are pledged to providing the best possible technical available -
PERIOD. We highly encourage you to attempt to answer your own questions
by first looking in the ZIPPER Payroll User's Manual (ZIPPER.DOC). In
most cases the answer you seek can be found there. In the event you are
still having a problem, please contact ZIPPER Brand Software.
We are sure that you will understand that support priority must be given
to registered users. Within that context, we will do our best to provide
technical support to unregistered users.
Technical support in one of the following ways:
(1) VOICE: Monday - Friday
(206) 728-8427 8:30am - 5:00pm Pacific Time
If support is not immediately available you will be
able to leave voice mail. We will return calls in
the order received, with priority given to registered
users. ALL CALLS WILL BE RETURNED COLLECT.
(2) E-mail: Via the INTERNET - sent to:
edprotas@interserv.com
or via Compuserve to: 71221,376
(soon to be Zipper_Brand)
(3) ZIPPER Brand Software BBS: Available 24 hours a day.
(206) 337-7868
Please review the file OUR_BBS.DOC for additional
information about using the BBS.
(4) FAX
(206) 337-1842
ASP OMBUDSMAN POLICY
ZIPPER Brand Software (SOFTCRAFT) is a member of the Association of Shareware
Professionals (ASP).
ASP wants to make sure that the shareware principle works for you. If you
are unable to resolve a shareware-related problem with an ASP member by
contacting the member directly, ASP may be able to help. The ASP Ombudsman
can help you resolve a dispute or problem with an ASP member, but does not
provide technical support for members' products. Please write to the ASP
Ombudsman at 545 Grover Road, Muskegon, MI 49442 or send a CompuServe
message via CompuServe Mail to ASP Ombudsman 70007,3536.
USER'S MANUAL REVISIONS & ADDITIONS
Recent changes in the functionality of ZIPPER Payroll required several
programming changes. A few of these changes, due to timing, have not
been documented in the User's Manual (or ZIPPER.DOC). Please review
these changes below.
YEAR TO DATE PAYROLL RECORD SCREEN
When you enter each new employee, ZIPPER creates a Year To Date Payroll
record. If you start ZIPPER Payroll during mid year (see the User's
Manual), you have the ability to enter accumulated values from whatever
system you have previously used. Previous versions of ZIPPER Payroll
and the User's Manual reflect the fact that this information was entered
into one screen. Beginning with release 1.7, the Year To Date Payroll
record now provides three screens. You can move through each field in
the normal manner, or quickly move to each screen by pressing the
[PageDown] and/or [PageUp] keys.
For the most part, the fields are the same, though the layout and order
is quite different. The new screens are easier to read, but at the
expense of not having all this information on just one screen. Sorry,
but we ran out of room.
The main difference are as follows:
State Unemployment (SUTA): This is a new deduction provided for states
where (a portion of) SUTA may be deducted from from the employee. If a
deduction rate in entered into the system screen (Payroll Tax Rates &
Tables, - FICA, FUTA, SUTA, and User Defined, then a deduction will be
calculated.
Pension Plan: This field contains the amount deducted from the
employees pay, regardless whether this amount is subject to FIT. On the
third screen is a section for pension plans. The first field, "Deferred
Earnings" includes only those amounts (included in the Pension Plan
field) that were NOT subject to FIT. There is a similar field for
pension plan deductions that were not subject to SIT (State Income Tax).
There is also a field provided for Employer Contributions to a pension
plan.
PENSION PLANS
Pension plans is a feature that is new with the version 1.7 release.
This is a very powerful feature, and the way in which it has been
implemented in ZIPPER provides a wide range of flexability. Setting up
pensions plans is described in the users manual, ZIPPER.DOC, but the
following information will provide additional insight as to various ways
in which pension plans can be used.
Setting up pension involves two setps: Configuration of the pension plan
(you can configure up to nine different plans); and linking a pension
plan to an employee. The users manual describes these steps.
There are seven fields in each pension plan (Pension Plan 1 through 9).
Plan Name
Employee Deduction Rate
Employer Contribution Rate 1
Employer Contribution Rate 2
Maximum Annual Employee Contribution
Employee Deductions Subject To
Federal Withholding
State Withholding
Plan Name: ZIPPER is initially configured without pension plans. Each
of the 9 available plans comes with the Plan Name as "Unused". Entering
a name is not required, but a descriptive name will be helpful. The
plan name will be displayed in the employee record when an employee is
linked to a particular plan. Having a meaningful name will be helpful
in making sure that the proper plan has been entered into the employee
record.
Note: The next three fields should be entered as a decimal value
representing a percent. EXAMPLE: Enter 6-1/2 percent (6.5%) as 0.065
Employee Deduction Rate: This rate is used to calculate the amount of
the employee's contribution to their pension fund. The rate is
multiplied against the amount of gross pay.
There is also a field in the employee record called Pension Deduction.
This field is a dollar value field that would contain a "flat rate"
pension deduction. This amount is automatically entered by ZIPPER into
the payroll record every time the employee is paid. If the field is
blank, no amount will be entered by ZIPPER. Even if an amount is
entered, you can modify or delete this amount every time payroll is
processed. This field can be used in addition to, or instead of the
Employee Deduction Rate field in the Pension Plan record. The Pension
Deduction is a "flat" deduction, the Employee Deduction (Rate) is a
calculated deduction.
The employee contribution is subject to any amount entered into the
Maximum Annual Employee Contribution field. (See below). If this field
is blank, ZIPPER considers that there is no (annual) limit to the amount
of employee contribution. If there is a value entered, ZIPPER checks to
see whether or not this employee has reached that limit. If so, the
current amount of employee contribution will be limited by such annual
limits. Additionally, the Employer Contribution (Rate 1) (a percent of
the employees deduction) can therefore be affected the amount of the
Maximum Annual Employee Contribution.
Employer Contribution Rate 1: This rate represents a percentage of the
employee deduction. The employee deduction is created by the Pension
Deduction field in the employee/payroll record, and/or the amount
calculated by the Employee Deduction Rate. The employer's contribution
is not considered "defered earnings", and ZIPPER will report such
amounts in Box 14 (Other) of the employee's W-2.
This is one of two methods available to calculate an employer
contribution to a pension fund. Both rates should be entered as a
decimal value (as descirbed above). Only one of these rates should be
used, however. Do not use both rates, as this will cause ZIPPER to not
calculate any employer contribution.
Employer Contribution Rate 2: This rate is used to calculate an
employer contribution based on the amount of gross pay. This rate is
completely independent of any employee contribution. Do not enter a
value in this field if you have entered a value into Employer
Contribution Rate 1. This will create an error condition, and will
cause ZIPPER to not calculate any employer contribution.
Employee Deduction Subject To Federal Withholding: This field, and the
one below work in a similar manner. The field is either blank, ot there
is a check mark displayed. The default is to have the check mark
displayed.
Having a check mark displayed means that any employee deduction
(contribution to a pension plan) will be treated just like any other
deduction. The amount of earnings that make up the employee deduction
is treated like regular wages, and is subject to federal withholding.
This means it is taxable income. This type of configuration could be
used for saving plans, savings bond purchase plans, or any other type of
"after tax" contributions.
Having this field blank means that the deduction is considered non-
taxable, and is treated as "defered earnings". Federal withholding is
not calculated on the amount contributed (by the employee) to a pension
plan. If there is a limit to "non-taxable" employee contributions, an
amount should be entered into Maximum Annual Employee Contribution.
ZIPPER will show any "defered earnings" in Box 13 of the employee's W-2.
Employee Deduction Subject To State Withholding: Same as above.
EXPANDED ALLOWABLE PAYROLL FREQUENCY
In addition to the present allowable payroll frequencies (Monthly,
SemiMonthly, BiWeekly, and Weekly), payroll processing can now be
provided for employees paid Daily, Quarterly, SemiAnnualy, and Annually.
This provides greater flexibility in the payment of bonuses,
commissions, or other "lump sum" allowances on a periodic basis.
Note that the allowable values for Pay Periods per Year field have been
expanded. ZIPPER will now accept the following entries:
1, 2, 4, 12, 24, 26, 52, or 260 (optionally 365)
Existing
12 - Monthly
24 - SemiMonthly
26 - BiWeekly
52 - Weekly
New
1 - Annual
2 - SemiAnnual
4 - Quarterly
260 - Daily (52 weeks x 5 days)
or optionally
365 - Daily (for logical thinkers)
IMPROVED MULTI-STATE PAYROLL (W-2) PROCESSING
This modification allows your company to be located in one state, and
process payroll for another state. A new field has been added to the
COMPANY screen - Calculate withholding for which state:.
You are still limited to processing payroll for only one state per
payroll database. See the ZIPPER Payroll User's Manual (ZIPPER.DOC)
regarding Multi-State payroll. This change makes it easier to have a
"parent" company in one state, and offices in other states.
CHECK PROCESSING OPTIONS
The menu option to simply print payroll vouchers has been eliminated.
Payroll vouchers are still available, but must be accessed either from
the (2) Export or (3) Manual menu selection. On-line help is now
available at this menu.
APPENDIX
SPECIAL CONDITIONS
========================================================================
STATE STANDARD DEDUCTION
ZIPPER uses the following rules with respect to the "State Standard
Deduction".
Although it is possible to enter any single digit number (0 through 9),
the only valid entries are the values 0 through 3.
0 - None
1 - Single
2 - Married
3 - Other
If you enter a value greater than 3, ZIPPER will interpret the entry as
equal to the value for the Married Standard Deduction (2).
You should enter 0 (zero) only if your state provides a zero value. Some
states equate 0 and 1. Unless your state specifically provides a zero
value for no standard deduction, entering a zero will equate to the
Single Standard Deduction.
ARIZONA
Arizona withholding is computed as 20% of the Federal Withholding. Arizona
allows optional (higher) withholding rates of 22%, 28%, and 32%. ZIPPER
uses separate tax tables to provide the various rates. Select the proper
tax table for each employee.
ZIPPER
Arizona Withholding Rate State Tax Table
-------------------------------------------------------------------------
20% (Standard) 1
22% (Optional) 2
28% (Optional) 3
32% (Optional) 4
Employees who earns less than $15,000.00 annually are taxed at the rate of
10%.
ARKANSAS
Arkansas utilizes four standard deductions. Enter the standard deduction
for each employee based on the description below.
ZIPPER
State Category State Standard Deduction
-------------------------------------------------------------------------
1. Single claiming exemption for self 1 - Single
2. Married claiming both exemptions 2 - Married
3. Married claiming exemption for self 3 - Other
4. No personal exemptions claimed 0 - None
CALIFORNIA
California utilizes three tax tables. Select the proper ZIPPER State Tax
Table that corresponds to the California Tax Table.
California ZIPPER
Tax Tables State Tax Table
-------------------------------------------------------------------------
Single Persons, Dual Income Married,
or Married with Multiple Employers 1
Married Persons 2
Head of Household 3
California utilizes four standard deductions. Select the proper ZIPPER
State Standard Deduction that corresponds to the California Standard
Deduction.
ZIPPER
California Standard Deduction State Standard Deduction
-------------------------------------------------------------------------
1. Single (Dual Income Married or
Married w/ Multiple Employers) 1 - Single
2. Married (0 or 1 Allowance on DE-4) 1 - Single
3. Married (2 or more Allowances on DE-4) 2 - Married
4. Unmarried Head of Household 3 - Other
California also provides for "Additional Withholding Allowances for
Estimated Deductions". This is listed in "Table 2 - Estimated Deduction
Table" in the California Personal Income Tax Withholding Guide. The
California "Additional Withholding Allowance" corresponds to the ZIPPER
State Extra Deduction. Enter the number of Additional Withholding
Allowances claimed (Form DE-4 or W-4) into the field for "State Extra
Deductions".
California also provides a "Low Income Exemption". The amount of the
exemption is based on the "marital status" of the individual employee.
ZIPPER determines the "marital status" based on the value entered in the
field for "State Tax Table". ZIPPER determines if the exemption applies
when payroll is computed.
CONNECTICUT
Connecticut recently enacted a personal income tax. Withholding of
income tax became effective October 1, 1991.
The design of the Connecticut withholding system for 1991 does not
conform to the federal withholding system, or any other state system.
We have elected, at this point anyway, to not support automated state
withholding for Connecticut.
In order to use ZIPPER Payroll in Connecticut, you will need to manually
calculate the amount of state withholding for each employee, and place
this figure in the field for Extra State Withholding. You can do this
each time payroll is processed, or place this amount in the individual
employee record. Placing the amount in the employee record will
automatically enter it into the payroll record. This amount can then be
adjusted as necessary.
GEORGIA
Georgia utilizes four tax tables. The values contained in Table G and
Table I are the same.
Georgia ZIPPER
Tax Tables State Tax Table
-------------------------------------------------------------------------
Table F - MARRIED FILING JOINT RETURN 2
(With one having income)
or HEAD OF HOUSEHOLD
Table G - MARRIED FILING JOINT RETURN 3
(Both spouses having income)
Table H - SINGLE INDIVIDUAL 1
Table I - MARRIED FILING SEPARATE RETURN 3
IOWA
Iowa allows a personal tax credit of $20.00 (annual) for the first and
second exemptions claimed, and a $15.00 tax credit for the third and each
subsequent exemption. Most states use only one rate, and ZIPPER does not
provide the ability to utilize multiple rates.
We have elected to use the $20.00 rate, and this will work correctly for
employees who elect only 1 or 2 tax exemptions / credits. Employees who
elect three or more exemptions / credits will consequently not have
enough withholding taken from their pay. The amount of error will be
small, but some employees may wish to have extra state withholding taken
from their check to compensate for this condition. The amount of extra
state withholding must be entered for each employee when the employee is
entered into your payroll database. Extra withholding does not effect
the amount of "normal" state withholding that is computed during payroll
processing. The amount of Extra State Withholding may be modified at any
time, and only effects payroll computed after such changes.
The amount of payroll error (state withholding) produced by this
condition is as follows:
Pay Period Error for each exemption
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Weekly $ .09
Biweekly .19
Semimonthly .20
Monthly .42
MARYLAND
Maryland uses eight tax tables. Select the proper table based on the
following:
ZIPPER
Maryland Tax Table State Tax Table
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Table "A" (20% Local Rate) 1
Table "B" (25% Local Rate) 2
Table "C" (30% Local Rate) 3
Table "D" (35% Local Rate) 4
Table "E" (40% Local Rate) 5
Table "F" (45% Local Rate) 6
Table "G" (50% Local Rate) 7
Table "NR" (Nonresident) 8
MASSACHUSETTS
Massachusetts allows a deduction for the amount of U.S. Social Security
(FICA) withheld, up to a maximum amount. ZIPPER has no way of knowing
how much any employee may have contributed to FICA during the current
year through another employer. When you hire an employee who has worked
during the current year for another employer, you should inform this
person that they will be "over-withheld", just as though they had not
worked for another employer. An overpayment may be claimed as a refund,
depending on their overall tax liability.
Massachusetts uses a combination of two exemption values. ZIPPER matches
this condition by using both the State Standard Deduction and the
Personal Exemption.
State Standard Deduction:
ZIPPER
Massachusetts Category State Standard Deduction
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No personal exemptions claimed 0 - None
Single claiming exemption for self 1 - Single
Married claiming both exemptions 2 - Married
Personal Exemptions: Enter the number of exemptions claimed.
State Extra Deduction: Massachusetts also allows a Blind Exemption. If
an employee is entitled to claim this exemption, the number of blind
exemptions should be entered as State Extra Exemptions.
A claimed spouse counts as "2" exemptions for Massachusetts income tax
withholding purposes. An employee who claims only himself and his wife
is treated as having "3" exemptions. To match this condition, married
persons claiming themselves and their spouse should be entered as follows:
State Standard Deduction: 2
Personal Exemptions : 3 (plus any additional exemptions claimed)
ZIPPER automatically determines if the Massachusetts Low Income Exemption
applies.
MISSOURI
Personal Exemptions:
Missouri allows $1,200.00 for the first allowance, and $400.00 for each
additional allowance for single persons; $1,200.00 for the first
allowance, $1,200.00 for the second allowance, and $400.00 for each
additional allowance for married persons.
ZIPPER equates the Personal Exemption with the $1,200.00 MO W-4
allowances (either 1 or 2). Enter either a 1 (for single employees) or a
2 (for married employees) in the Personal Exemptions field.
State Extra Deductions:
Enter any additional MO W-4 allowances (the $400.00 allowances) in this
field.
MISSISSIPPI
Mississippi utilizes three standard deductions:
ZIPPER
State Category State Standard Deduction
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1. Single 1 - Single
2. Married or Head of Family 2 - Married
3. Married, both spouses employed 3 - Other
State Tax Table:
Mississippi utilizes the personal exemptions, also called dependents,
(Form 62-420) indicated below:
Single - $6,000.00
Married Individuals (jointly) - $9,500.00
Head of Family - $9,500.00
Dependents - $1,500.00
Aged 65 and over - $1,500.00
Blind - $1,500.00
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ZIPPER SELECTS THE PROPER PERSONAL EXEMPTION BASED ON THE VALUE ENTERED
IN THE FIELD -- Tax Tables - State:.
***********************************************************************
This may seem confusing, as Mississippi uses only one tax table (a
series of tax rates), regardless of marital status. ZIPPER uses this
field, in this way, ONLY for Mississippi.
If you enter "1" (for Single), ZIPPER will use the $6,000.00 personal
exemption. If you enter any other value (0 through 9), ZIPPER will use
the $9,500.00 personal exemption. We recommend you enter "2" - for
Married, and "3" - for Head of Family. As indicated above, Mississippi
allows the same personal exemption value for both Married and Head of
Family.
Enter the number of additional personal exemptions ("Dependents" - line
4, Form 62-420) for the total number of dependents, aged 65 and over,
and/or blindness in the field "State Extra Deductions:"
If both spouses are employee, Mississippi tax laws allows the spouses to
"share" the $9,500.00 exemption in any manner they choose (in multiples
of $500.00). ZIPPER does not provide this flexibility. An employee will
have to elect to take either the Single ($6,000.00) exemption or the
Married ($9,500.00) exemption.
An alternate means of dealing with this condition would be for a married
individual to take the Single exemption, and then take 1 or 2 personal
exemptions ( totals $7,500.00 or $9,000.00). The spouse would then have
to claim the balance. Another alternate would be to claim 0 (zero)
personal exemptions, and then claim any equivalent number of "Extra
Deductions" (each extra deduction = $1,500.00). These alternate methods
would produce some error if both spouse's worked for you (or the spouse's
payroll was also computed by ZIPPER). The amount of error will not be
significant over the full year, and will not have any effect on the
taxpayers actual liability. It will affect the amount of refund or tax
due.
NEBRASKA
The formula for calculating Nebraska withholding has changed for 1994.
The new method is somewhat different in that it uses a graduated personal
exemption. ZIPPER does not directly support this method, and will create
minor calculation errors for single employees who earn over $26,500.00
annually, or married (including surviving spouse) employees who earn over
$33,000.00 annually. The ANNUAL tax tables appear below.
SINGLE person - including head of household
Annual Income Range Nebraska Credit Per ZIPPER Credit Per
W-4 Allowance W-4 Allowance
_________________________________________________________________________
$ 0 - $26,500 $69.00 $69.00
$26,500 - $35,000 $49.00 $69.00
$35,000 - $80,000 $25.00 $69.00
$80,000 - $ 0.00 $69.00
MARRIED person - including surviving spouse
Annual Income Range Nebraska Credit Per ZIPPER Credit Per
W-4 Allowance W-4 Allowance
_________________________________________________________________________
$ 0 - $33,000 $69.00 $69.00
$33,000 - $42,500 $59.00 $69.00
$42,500 - $60,000 $45.00 $69.00
$60,000 - $80,000 $20.00 $69.00
$80,000 - $ 0.00 $69.00
To compensate for this difference, you can either reduce the number of
Personal Exemptions claimed, or enter an amount of Extra State
Withholding into individual employee records who are in the higher income
ranges. As an example, employees who earn over $80,000 per year should
not claim any ZIPPER Personal Exemptions. Others could be "adjusted" in
a similar manner. Remember these are ANNUAL amounts, so the difference
each pay period should be quite small. Since withholding is an estimated
tax, the overall resulting difference should not be considered
significant.
NEW JERSEY
New Jersey uses five tax tables;
New Jersey ZIPPER
Tax Tables State Tax Table
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Table "A" 1
Table "B" 2
Table "C" 3
Table "D" 4
Table "E" 5