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Employee Taxes

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Employee Tax Detail records apply taxes to an employee's pay and apply per-employee taxes to the employer.

Employee tax details track the taxes being withheld for an employee and report all taxes paid by or for this employee, i.e. Federal, State, and local taxes, both employee- and employer-paid taxes.

• Set up on the code-level allows most employee tax assignments to create automatically based on the employee's assigned work and resident settings whenever the employee lacks another tax for the same tax-authority level, such as local resident or FIT. Confirm the tax assignments.
• Settings on an Employee Tax Detail overrule values form the related Tax code for that employee only. Verify, add, and modify records as needed to apply taxes in accordance with regulatory guidelines. Optionally, to view withheld tax amounts before processing payroll, save time and pay for an employee on the detailed pay entry screen and click on the "Gross To Net" button.
• Set up new tax assignments as needed.
• Manual checks are sometimes used to override tax amounts under special circumstances. For Payroll, when a Payroll is in Gross-to-Net, processed amounts can be reviewed on pay run verification reports.

Payroll posting updates values seen under the "Payroll Information" section, Current, Month to Date, Quarter to Date, and Year to Date, as applicable for the most recently posted payroll that includes this employee. It also reports the taxable wage amounts for this tax.

For information about applying tax levies, see the Garnishments topic.

An Employee Tax Detail cannot be deleted if year-to-date tax or taxable-wage amounts exist for it.