The Brackets tab, available on the Local/Other Tax Codes window, allows you to set up an annualized wage brackets table that the system refers to when calculating amounts for taxes with the calculation method Tax Bracket Table.
If you are setting up a tax with both employee and employer sides, you can select Tax Bracket Table as the calculation method for one side of the tax only.
All amounts you set up on the Wage Brackets Table must be annualized. Be sure to convert ranges of pay for your employees to an annual basis. For example, enter a pay range of $1,000 to $1,500 per month as $12,000 to $18,000 in the wage bracket table. The system converts wage table-based amounts back to amounts appropriate for the pay frequency when the tax or deduction is calculated.
For information about the other tabs on the window, click these links
Note: The Employee and Employer tabs are available only on the Local/Other Tax Codes window: