Other Taxes - Tax Code Tab

Access this tab using Maintain>Payroll>Other Taxes.

Use this form to set up tax codes for the localities in which your employees are subject to tax, as well as most State Disability Insurance (SDI), and Temporary Disability Insurance (TDI) withholding and expensing formulas. On the subsequent tabs, specify how to calculate and account for these other taxes. Additionally, you will specify how to distribute the Employer tax (if any).

On this tab, create tax codes, enter your organization's Employer Tax ID number, and specify which withholding taxes apply: Employee and/or Employer.

 

Tax Code: Enter a new tax code. Make the first few characters of the code unique so that the paycheck displays a useful identifier. We recommend limiting your entry to strictly alphabetic characters (A through Z) or numeric characters (0 through 9), and avoiding the use of symbols.

Status: Specify the status of the tax code . When creating a new code, accept the default status, A (Active), or select I (Inactive) or D (Discontinued), from the drop-down list. The status can be changed at any time. Below are valid status entries and their descriptions:

• Active - An active status allows payroll to be processed using this code.
• Inactive - Set a code to inactive when it is not being used regularly for payroll, but it could be used at some point. A warning message appears when attempting to use an inactive code. The warning message is for notification only; the code can still be used in the payroll process.
• Discontinued - Designate a code as discontinued when it is no longer being used. The system does not allow payroll to be processed using a code with a discontinued status.

Title: Enter the description of the tax code.

Aatrix ® Tax Type: Click Find to select the appropriate Aatrix Tax Type for local or other tax types. Use the Filter to display the most applicable items. This is for Aatrix reporting purposes only, and displays on the Other Taxes List report.

Employer Tax ID: Enter the employer tax ID number for the tax code.

Applicable Taxes Employee, Employer: Select whether the tax is paid by the Employee and/or Employer for the designated code. Note that Employee is not an employer expense and therefore is not distributed as an expense.