District of Columbia Tax

For District of Columbia residents, you specify the employee's status and exemptions.

Deltek Modification Date - 12/15/17

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

Field	Description
Status	Enter the marital status claimed by the employee on the District of Columbia Employee’s Withholding Exemption Certificate, Form D-4. Options are: A: Single B: Married and filing separately J: Married and filing jointly H: Head of household
Exemptions	Enter the number of exemptions claimed by the employee on Form D-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form D-4. Additional exemptions for age and blindness. Exemptions for dependents. If the employee did not submit Form D-4, enter zero in this field.
Other Exemptions	The District of Columbia’s tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

DPS automatically computes the Allowance, which is used in determining net income tax.

Allowance

The Allowance is based on the number of exemptions entered in the Exemptions field. It is determined by multiplying the number of exemptions by $4,150.

How DPS Calculates Tax

To calculate an employee's District of Columbia 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 Allowance and 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine the taxable income.
3. Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.