Oklahoma Payroll Instructions

Oklahoma has state income tax withholding. Tax rates did not change in 2023. The steps remained the same, Withholding formulas have changed in 21 of the past 33 years, including four major changes to the calculation methods used.

For many years, Oklahoma was the second most difficult US state to maintain, surpassed only by Connecticut. However, the Sooners simplified tax calculations in 2011. Now they are about average.

HINT: TurtleSoft provides free annual updates for US federal and Oklahoma tax withholding rates.

Oklahoma State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Open the Payroll tab on the left, and choose Employees.
  2. Locate the employee's record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.
  7. Enter a Oklahoma Tax Package into the Tax Package field, based on the employee’s W4 form. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. HINT: If you don't see Oklahoma packages in the list, you'll need to import 2022 tax info first.
  8. Click OK.

Oklahoma State Unemployment Tax Instructions

In 2022, Oklahoma state unemployment insurance tax is based on the first $25,700 in wages for each employee (a slight increase from 2022). The starting rate for a new employer is 1.2%. After the first year the rate is based on the employer's experience rating-- the tax can be anywhere between 0.1% and 5.5%.

To enter your Oklahoma SUTA tax rate into Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open the Oklahoma SUTA item. HINT: If you don't see Oklahoma SUTA in the list, you'll need to import the Oklahoma payroll info first.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Oklahoma Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

State Tax Contacts

Website

Little Known Oklahoma Tax Fact

Thanks to the Panhandle Prosperity Act of 1987, residents of the Oklahoma panhandle may purchase goods tax-free from businesses located in the Texas, Idaho and Florida panhandles.

Official State Lawn Ornament

Oil derrick.