US Taxes - Payroll > Constants input

Owned by Halvard Meijer
Last updated: Feb 25, 2022
3 min read



Information that needs to be added on person to Payroll > Constants tab to calculate US Taxes



Payroll fields for Taxes:

P311 Marital Status for tax
P312 Exempt from income tax (Y/N)
P313 Additional Tax Amount
P315 401(K) - Pre Tax
P316 401(K) -Post Tax
P317 401(K) -PreTax Catch Up
P318 401(K) -Roth

New field for W-4 2020 form (from v. 2019.50.2.1/ 2019.60):

P366 - indicates if the person has Form W-4 2020 or later

Information on Person that is used for calculation of US Taxes

On Payroll > Constants it’s possible to input personal information related to calculation of US Taxes.

  1. National Payroll Code “US United States” should be selected for Organization a crew profile is linked to in Personal Details:


  2. 001 US Tax should be defined in Automatic tax field in Payroll > Constants.

  3. Option Has form W-4: if a person provides W-4 form of year 2020 format and later (from v. 2019.50.2.1/ 2019.60).

  4. Allowances claimed on Form W-4 – nr of dependents (family members). E.g., for a crew member that has a wife and 2 kids it should be 3. Used for W-4 before year 2020.

  5. Additional Tax amount – additional amount that will be deducted for Taxes (EC 930/ 931)

  6. Marital status for Tax – pick up from a list in GCT. Rules for defining Single of Married when calculating EC 930/ 931 are as follows: if marital status codes are as follows: (WMaritalcode = '2') or (WMaritalcode = 'M') or (WMaritalcode='MFJ') or (WMaritalcode='Married') then create entry 931 Federal Income Tax (married), otherwise - entry code 930 Federal Income Tax (single). New Marital status codes are added from year 2020 (from v. 2019.50.2.1/ 2019.60) and should be added to General Codes Table > Marital status code:
    MFJ: Married filing jointly
    MFS: Married filing separately
    HOH: Head of household 

  7. Exempt from Income Tax – set the option if a person should be excluded from the list of crew for whom Income taxes are calculated

  8. 401 (k) – Pension program

  9. Pre Tax – reduction on gross taxable amount (benefit) before Tax is calculated: input percentage of the reduction. E.g., gross is USD 1000. If you input 10, it will become USD 1000-10%=USD 900. 10% of the gross amount - USD 100 will be contributed to a retirement account in this case (a separate entry code).
    There is a limit on a Pre Tax amount for Employee contribution: USD 19500 per year in 2020 (in 2019 – 19000). Maximum total for all the retirement contributions by employer and employee: USD 57000 in 2020 for people under 50 years old (USD 56000 in 2019) and USD 63000 in 2020 for those who turned 50 and older (USD 62000 in 2019). 

  10. Post Tax – contribution to a retirement account after taxes have already been deducted from an individual's income (after the Tax deduction): input percentage of the contribution that will be deducted. E.g. after Tax deduction the amount is USD 1000. If you input 5, it will become USD 1000-5%=USD 950. 5% of the amount – USD 50 will be contributed to a retirement account in this case (a separate entry code).

  11. Pre Tax Catch Up – contribution to a retirement account before Taxes are withdrawn available for people who turned 50 and older. Annual limit is USD 6500 in 2020 (USD 6000 in 2019). Total annual limit for Pre Tax and Pre Tax Catch Up for Employee is USD 26000 (19500+6500).

  12. Roth – a Post Tax contribution, deducted after Taxes have been deducted from a person’s income. Input a percentage of the contribution.