Delaware Tax

For Delaware residents, you specify the employee's status and exemptions.

Deltek Modification Date - 11/21/11

Enter the following field information for residents of Delaware on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Enter the marital status claimed by the employee for federal income tax purposes on Form W-4. Options are: S: Single 1: Married, filing separately 2: Married, filing jointly
Exemptions	Enter the total number of regular allowances claimed by the employee on federal Form W-4, excluding the following federal exemptions: Child care credit Earned income credit Credit for the elderly If the employee did not submit Form W-4, enter zero for the number of exemptions.
Other Exemptions	Delaware’s tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

DPS automatically computes the following variables based on the exemptions and filing status claimed by the employee.

Standard Deduction

DPS calculates the standard deduction using a table based on an annual deduction of $3,250 for single employees, $6,500 for married employees filing jointly, and 3,250 for married employees filing separately.

Tax Credit

DPS calculates the credit based on the number of exemptions claimed in the Exemptions field. DPS determines the amount of the credit by multiplying the number of exemptions by $110.

How DPS Calculates Tax

To calculate an employee's Delaware State tax, DPS does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's Standard Deduction, and 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages.
3. Calculates the computed tax, using Tax Calculation Method 1.
4. Subtracts a Credit (if applicable) from the computed tax, to determine the net income tax.
5. Divides the annual income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period. If the result is less than or equal to zero, no tax is withheld.