PR> Maintenance> Tax Tables

Tax Table Maintenance

 

Summary

 

The Tax Table Maintenance window is used to create and maintain tax tables. The tax table line items must be updated annually as tax codes are modified by the government agencies (IRS, states). The tax table is used to set the minimum income, standard deductions and tax credits for each tax code (Federal, State, Regional, Other). These tax codes are often referred to as super deductions. California customers will use this table to calculate the OASDI modification factor.

 

In order for a tax to apply to the wages on a payroll check, there must be a tax status (single, married, head of household) and super deduction (FED, STATE) set up on the employee record, the tax status and tax code must be set up on the tax table, and the pay code used to create the payroll check must affect the gross pay of the super deduction (affect federal, affect state). If any of these conditions is not met, the tax will not apply to the payroll check. For more information about taxes, see the document on Payroll Taxes.

 

Tax statuses are attached to employee records using the Taxes tab on the Employee Maintenance window (PR> Maintenance> Employee> Taxes tab). Enter a tax status for each tax code that applies to the employee record. For example, if an employee is single, enter an S in the federal tax field on the employee record. When payroll is generated on the employee, the tax table entry with code FED and status S will be applied to the employee. Also make sure the super deductions (FED, STATE, etc.) are attached to the employee record (PR> Maintenance> Employee> Deductions tab). For example, if the FED deduction is not attached to the employee record or is set up as suspended, federal taxes will not be deducted from the employee’s paycheck.

 

Once the employee records have been set up, use the Tax Table Maintenance window to create the tax table entries that will be used to calculate taxes. If you would like to create a new tax table line item with a modified withholding amount, enter the name of an existing tax code (EIC, FED, REGION, STATE) and create a new status (M, S, Head of Household, ST, X). The tax status of ST is used to tax employees at a supplemental tax rate.

 

Related Links

 

Click here for general information on Payroll Taxes.

Click here for information on Supplemental Tax Rates.

 

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