Federal Taxes - Federal Tab

Access this tab using Maintain>Payroll>Federal Taxes.

Use this form to specify how the system is to account for the federal tax withheld from employees' checks. This not only accommodates the employee's federal tax withholding, but also the employer-paid federal tax expense. Also, you can specify the federal unemployment tax information.

On this tab, select the Liability and Expense Accounts that the system should use to account for Social Security Taxes, Medicare, and Federal Unemployment Taxes.

 

Federal Taxes Tax Account, Code, Title: The Tax Account column, displays the types of federal tax accounts to apply account assignments. Select an existing account code or enter a new one in the Code column. The system displays a description for the code in the Title column. All Expense and Liability accounts must be existing, active or inactive General Ledger accounts that are not subledger-type accounts.

• FIT Withholding Liability: This is the liability account for Federal Withholding Taxes.
• Social Security Expense: This is the General Ledger expense account for Social Security Taxes.
• Social Security Liability: This is the General Ledger liability account for Social Security Taxes.
• Medicare Expense: This is the General Ledger expense account for Medicare.
• Medicare Liability: This is the General Ledger liability account for Medicare.
• Federal Unemployment Expense: This is the General Ledger expense account for Federal Unemployment Tax.
• Federal Unemployment Liability: This is the General Ledger liability account for Federal Unemployment Tax.