Set Up/Adjust Employee Balances - Taxes Tab

Access this tab using Activities>Payroll>Set Up/Adjust Employee Balances. It is only available with the Payroll module; it is not available for Payroll Link users.

Use this tab to enter adjustments to taxes for an employee. The Tax Types you specify include federal, state, and other withholding taxes. You can only enter amounts for SUTA Weeks, Employee Amount, and Employer Amount if these columns are applicable to the designated Tax Type. Furthermore, if the Tax Type is SWT (State Withholding Tax), SUTA (State Unemployment Tax), LWT (Other Taxes Employee Paid Tax) or LER (Other Taxes Employer Paid Tax), you must specify a Jurisdiction. Jurisdiction is the State or Locality Code you set up using the Maintain>Payroll>State Taxes form and/or Other Taxes form.

The tax types are as follows:

Code	Name	Jurisdiction Required
FIT	Federal Income Tax	No
FUTA	Federal Unemployment Tax	No
SS	Social Security Taxes	No
MC	Medicare Taxes	No
EIC	Earned Income Credit	No
SWT	State Withholding Taxes	Yes
SUTA	State Unemployment Taxes	Yes
LWT	Other Taxes Employee Paid Taxes	Yes
LER	Other Taxes Employer Paid Taxes	Yes

Please note that if you use the tabs on this form to change the amounts of any earnings, benefits, or deductions that have been used in the calculation of any federal, state, or other withholding taxes; or workers' compensation; the related tax and/or workers' compensation amounts may be incorrect. Furthermore, be aware that any changes you make to earnings may affect benefits, deductions, and leave. Therefore, you must manually adjust taxes, workers' compensation, benefits, deductions, and/or leave for any such changes you make. If you do manually adjust either taxes or workers' compensation amounts, remember to also adjust the related subject earnings and/or hours.

 

Taxes: The Taxes table allows you to set up or adjust the following items for an employee.

• Tax Type: Enter a tax type.
• Jurisdiction: Enter a jurisdiction if the tax type is SWT, SUTA, LWT or LER.
• SUTA Weeks: Enter SUTA weeks only if the tax type is SUTA. To enter a negative number, press the minus key, and then enter the number.
• Employee Subject Earnings, Employer Subject Earnings: Enter the maximum taxable earnings that are subject to the designated tax type for the Employee or Employer. The amount you enter can be positive, negative, or zero.
• Gross Taxable Earnings: Enter earnings—regardless of maximums—that are subject to the designated tax type. The amount you enter can be positive, negative, or zero.
• Employee Amount, Employer Amount: Enter either, or both, depending on the tax type. Employee amount is required for FIT, EIC, SWT, SUTA (if set up to be employee paid), and LWT. Employer amount is required for FUTA, SUTA (if set up to be employer paid), and LER. Both columns are required for FICA, and SUTA (if set up to be paid by both). MC and SS are generally paid by both employee and employer, but amounts are not required to be entered in both columns. The Employee Amount you enter can be positive, negative, or zero.