Appendix D-Tax Setup Information > Tennessee State Tax

Tennessee State Tax

Important! Although the State of Tennessee 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 affect on the amount of state withholding, and no state taxes will be computed.

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 Two Incomes

To set up payroll calculations on an employee Tennessee State 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 Tennessee Income Tax row, enter the corresponding marital status number.
5 In the Std Allow column, in the cell of the Tennessee Income Tax row, enter the number of exemptions/allowances claimed.
6 On the menu bar, click File, then click Save.
More resources

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