How do I calculate the SITW when doing Payroll?

Please make sure that the following is setup:

Go to Payer>Payer Edit>Preferencesand make sure that Preference #3, under “Check Entry Fields”has a check in the box.

Go to Payer>Payer Edit>State/Localand select the W/H Method.

Next highlight the Employee and click Edit>Live Payroll Parameters and setup the employee’s State information. When you click on AddChk make sure there is a a check next toSITW (or place a -1.00 in the field).


Common State Income Tax Withholding Errors

SITW tax is among the most important calculations an employer will make when addressing payroll. Here are a few of the most common errors you can make, as well as how to avoid them.

  • Miscalculations – Year after year, bad math is responsible for the majority of state income tax withholding errors. The only way to avoid this is to have a computer do most of the calculations for you. For that, we recommend AMS Payroll. If you prefer to do your calculations manually, double- and triple-check your math.
  • Misclassification – 1099 workers handle their own employment taxes, while W-2 workers have their state income tax withheld from paychecks by the employer. Not sure which type you employ? Check out our guide.
  • Old W-4 Forms – When the Tax Cuts and Jobs act passed in December 2017, the IRS updated several income tax withholding tables and encouraged filers to review and update their W-4 forms. A 2018 survey suggest that most Americans didn’t do that, which means tax classifications may have changed without your knowledge. Double-check with your employees regarding all W-4 forms.


Software Solutions from AMS

Our W2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.