FarmBooks User Guide

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  5. State Tax Calculations
  6. Special State Calculation Rules

Special State Calculation Rules

Special State Calculation Rules

The state associated with the registration farm number determines the farm operating state. If a rule is not defined for the state, than it will calculate the same as it did since the inception of the program. See the section above for the Standard State Calculation.

However, the employee’s state tax authority may be used to override the farm operating state and to apply a different state tax rate and possible calculation if any calculation rules are defined. The employee residence or tax circumstance may require that you override the operating farm state.

There are some states where the calculation method described in the section above for “standard state calculation” would not yield the correct state withholding amount. FarmBooks has a rules database along with additional deduction types that allows the calculation method to be customized by state. Contact Support if you need a custom rule added for your state tax authority.