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Employee Tax Detail

The browse list on the online Employee Tax Detail shows the Tax Code followed by the Process Sequence number.

Fields on the Employee Tax Detail

For the selected employee and tax, values on the Employee Tax Detail are used for processing instead of the corresponding values on the Tax Code setup: Tax reciprocation, process sequence, and process payroll of the month checkboxes.

Employee Number. The employee whose tax record is displayed or is being defined is in the Employee Number field.
Tax Code. This tax code field displays tax codes without descriptions. For a new record, select the appropriate Tax Code. When you edit an existing tax detail, you cannot change the selected Tax Code.

Selecting a tax code auto-populates the tax reciprocation field and the Process Payroll checkboxes as marked or cleared according to the setup on the Tax Codes Table for the Tax Code. These checkboxes are editable.

Process Sequence number. Processing sequence determines the order in which funds are subtracted from the available wages within a group of like taxes. The Process Sequence number automatically populates when the Employee Tax Detail is first added, and this value may be edited as needed.

Note: Each Tax Detail record for an employee must have a different Process Sequence number compared to the other Tax Detail records for the employee. When a new tax detail is added online, the system adds one to the highest process sequence number in the employee's tax detail records and populates the Employee Tax Detail with that number.

No Tax Processing Rule

For standard tax processing, confirm that the "No Tax Processing Rule" checkboxes are clear.

For no tax processing determine whether either "Taxing Exempt" or "No Taxation" should be marked.

Taxing Exempt? For employees who are exempt from the particular tax, select the Taxing Exempt checkbox on the Employee Tax Detail for the affected employee and the tax. When a record is marked taxing exempt, taxable wages will accumulate, but the tax will not process.
No Taxation? For employees who shouldn't have a particular tax process and shouldn't have taxable wages accumulate for that particular tax, select the No Taxation checkbox on the Employee Tax Detail for the affected employee and the tax.

In some systems, the "No Tax" checkboxes may be view-only or hidden online.

Processing Information

If the employee has requested that additional tax be taken for this tax, enter the additional tax amount or additional tax percentage.

Additional Tax Amount. If the employee has requested that additional tax amount be withheld for this tax, enter the Additional Tax Amount. By default, the additional tax amount is 0.00, but this is editable. Enter the amount without symbols, i.e. enter 4.00 for $4.

To withhold only an Additional Amount, enter the amount in Additional Tax Amount and enter 99 as the number of Exemptions.

To withhold a tax amount of zero, enter only the 99 as the number of Exemptions. In this case, the Wages should still are accumulated and included in the Taxable Wages.

Note: The Employee Tax Detail has a payroll constraint that requires an Additional Tax Amount to be a positive value or 0.00. A record with a negative value in the Additional Tax Amount field cannot be saved.

Additional Tax Percent. If the employee has requested that additional tax percentage be withheld for this tax, enter the Additional Tax Percent. Enter the percentage as a whole number, i.e., enter 4.00 for 4%.

Note: The Employee Tax Detail has a payroll constraint that requires an Additional Tax Percent to be a positive value or 0.00. A record with a negative value in the Additional Tax Percent field cannot be saved.

Exemptions. For Federal income tax, enter the number of Exemptions claimed on the employee's W-4. For state income tax, enter the number of exemptions claimed on the state-withholding certificate (or sometimes W-4) according to the rules for the state.
Credits. The Credits field allows five (5) positions. If the employee is eligible for a credit for this tax, enter the amount as regulated by the tax code. For Mississippi income tax and the MJ filing status, see "Mississippi Personal Exemption Setup" for instructions.

Begin Date and End Date. The Begin and End Dates determine the Payrolls for which this tax code applies based on the Payroll Period Begin and End Dates on the Payroll Calendars.
Filing Status. Some taxes do not require a filing status. For income tax, enter the employee's Filing Status as completed on the W-4 form or state tax-withholding certificate as applicable.
Tax Reciprocation. For a tax that is reciprocal with other like taxes, select the tax reciprocation code.

Process Payroll checkboxes. Indicate the Payroll Number based on each Payroll Calendar that this tax detail will apply to by selecting the appropriate Process Payroll checkbox or boxes. The Payroll Numbers represent each payroll run within a month.

Process Payroll 1? Set this tax detail to process for every payroll with a 1 in the Payroll of the Month field on the Payroll Calendar.

Payroll 2? Set this tax detail to process for every payroll with a 2 in the Payroll of the Month field on the Payroll Calendar.

Payroll 3? Set this tax detail to process for every payroll with a 3 in the Payroll of the Month field on the Payroll Calendar.

Payroll 4? Set this tax detail to process for every payroll with a 4 in the Payroll of the Month field on the Payroll Calendar.

Payroll 5? Set this tax detail to process for every payroll with a 5 in the Payroll of the Month field on the Payroll Calendar.

Payroll Information

The Taxable Wage dollars for employee tax records continue to accumulate after any wage limits have been met that are defined on the Tax Codes Table for the Tax Code. Also, the Employee Taxable Wage dollars serve as the "true" total taxable wage amounts for reporting purposes.

The Payroll Information section automatically updates after each payroll processes and shows the year-to-date payroll amounts as of the last payroll processed for Current, Month to date, Quarter to date, andYear to date based on the check date of the payment: for Processed Taxes, Taxable Wages, Total Wages, and Weeks Worked.

Note: The system does not store negative employee taxable wage amounts for tax records that are processed using a percentage of another tax amount (i.e. SITAZ and local taxes).