Pension and Lump Sum withholding requirements vary widely throughout the US with each state providing their own regulations for how to calculate withholding. We perform research to determine the methodology and factors involved
in the withholding calculations for each state and maintain an up-to-date, detailed document that summarizes the methodology and requirements for each state as well as US federal withholding for pension and lump sum payments
and W-2 withholding. Our withholding documentation is updated at least quarterly and is available to our customers as part of a subscription service.
As part of that research process, we identify the various components required to perform the calculations for each state including marital status, number of exemptions, flat rates where permissible, and tax methods.
In cases where a state's language regarding withholding is ambiguous or lacking, we are in direct contact with the state’s withholding department to get clarification or further guidance.
Our service includes documentation for each of the 50 US states, as well as US territories (US Virgin Islands, Puerto Rico, Guam, Northern Marianna Islands).
In addition to US federal and state tax updates, our documentation also includes regular updates for Canadian Federal & Province tax for retirement accounts. We report changes to Claim Code Brackets, Tax Rates and Brackets,
Surtax where applicable, and various other factors used for calculating Federal & Province tax. We also contact the withholding departments (Quebec has it's own while the others are managed through a central department)
as required to resolve any questions.
We also offer programming services to update and maintain software modules that are used to compute federal and state tax withholding amounts as well Canadian withholding amounts according to our researched documentation.