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Other Taxes - Distribution Tab

Access this tab using Maintain>Payroll>Other Taxes.

Use this tab to specify how to distribute applicable employer paid taxes. (This tab is not used for applicable employee taxes.) Choose to have employer other withholding taxes distributed the same way the employee's earnings are distributed; limit distribution to the earnings used to calculate the other withholding tax; or distribute employer taxes using the specific Distribution Code entered on this tab.

 

Distribution of Employer Other Tax Expense Should: Select one of the three options (Follow Earnings on Timesheet, Follow Earnings Used to Calculate the Tax, or Use Distribution Code) for the system to distribute the accounting entry for applicable employer taxes. If Use Distribution Code is selected, enter an existing Distribution Code.

  • Click Distribution Codes Information to open the Maintain>Payroll>Distribution Codes form, where you can create or modify a distribution code. Each time this button is selected, a new Distribution Codes form is opened.
  • Many grants and contracts allow employer paid taxes to be charged directly to the funding source. In this case, choose Follow Earnings on Timesheet or Follow Earnings Used to Calculate the Tax. The employer paid taxes are distributed to the same Account Codes (Fund and any other account segments except General Ledger segments) as the employee's earnings. In other words, the Distribution Codes used to distribute the employee's earnings are also used to distribute the employer paid taxes. If more than one Distribution Code is used to distribute the employee's earnings, the employer paid taxes are distributed based upon a weighted average of the distributed earnings.
  • If there are one or more funding sources to which you do not distribute employer paid taxes (because you may have a negotiated rate or employer paid taxes are simply disallowed), choose Use Distribution Code and specify the exact Distribution Code to distribute the employer paid taxes, which may be entirely or partially distributed to overhead.