Other Taxes - Employer Taxes Tab

Access this tab using Maintain>Payroll>Other Taxes.

Use this tab to specify how to account for and calculate employer paid taxes, if any.

 

Expense Account: Enter the General Ledger expense account for the Employer's Paid Tax. The Expense Account must be existing, Active or Inactive General Ledger account that is not a subledger-type account.

Liability Account: Enter the General Ledger liability account for the Employer's Paid Tax. The Liability Account must be an existing, Active or Inactive General Ledger account that is not a subledger-type account.

Calculation Type: Select the calculation type and use the employer rate table to set up the tax calculation. The following describes each calculation type:

• Base Tax per Period with Minimum Wage Threshold - Taxes are calculated according to a fixed amount after a minimum wage amount is met for the pay period.
• Fixed Amount -Taxes require a fixed amount deduction per pay period.
• Percent of Wages with Cap Option - Taxes are calculated on a year-to-date or current pay period basis according to a percentage.

Employer Rate Table: The amounts and percentages entered in this table are used in the calculation of the withholding tax. You must complete at least one line of this table if the Employer Applicable Taxes check box was selected on the Tax Code tab. The following describes the possible Calculation Type selection and what columns display in the Employer Rate Table:

When entering percentages, do not include a decimal point. For fractional percentages, enter the leading zeroes. For example, enter the following numbers to indicate the following percentages:

0005 = .5%

005, 05, or 5 = 5%

50 = 50%

The system calculates up to four places to the right of the decimal point.

• Base Tax per Period with Minimum Wage Threshold - Enter the amount in the Base Tax column. Enter the Wage Threshold amount and select the Wage Threshold Period of Calendar Month or Calendar Year. The base tax is applied once per wage threshold period after the wage threshold is met or exceeded. Note that the Exemptions/Deductions table is not available.
• Fixed Amount - Enter the per pay period amount in the Fixed Amount column, the system applies the amount as a deduction at every pay cycle.
• Percent of Wages with Cap Option - Enter the Percent and select the Calculation Method of Year To Date or Current. To apply a maximum amount of earnings taxed, enter the amount in the Taxable Amount Under column. If there is no maximum amount of earnings taxed, the Taxable Amount Under may be left at 0 and no maximum will be applied, or you can enter a large number such as 999,999,999.99 to be applied as the maximum.