Employee Tax Setup Information Page

This page determines the employee's exemption status and tax tables for federal, state, and local taxes.

Menu Path: Human Resources > Entry & Processing > Employee > Employee Information > search for and select an employee >click Payroll Information on the Action Bar, and then select Taxes

Page Sections

The Employee Tax Setup Information page includes the following sections:

Federal

Determines the status for filing, number of dependents, and additional withholding amount.

State

Identifies the state taxes to be calculated and withheld, or if the employee is exempt from state taxes. It also stores the status for filing, number of dependents, and additional withholding amount.

Local

Identifies the relevant taxing localities of the employee. It also stores the status for filing, number of dependents, and additional withholding amount as well as other Ohio information.

Local tax records include the following information for each local tax deduction:

Current
Month-to-date
Quarter-to-date
Year-to-date
Figures today
Inception-to-date

Prior local tax information is not included.

Changing an employee's Tax Setup Information

Select Human Resources > Entry & Processing > Employee > Employee Information to display the Employee Information page.
On the Employee Information page, search for and select an employee record.
Click Payroll Information on the Action Bar, and then select Taxes from the drop-down.
On the Employee Tax Setup Information page, change the employee's record as desired. For details, refer to the Fields below.
Click OK to save the record.

Fields

Federal, State, and Local Sections

These sections contain the following fields, except where noted:

Field	Description
Exempt Status	Selection identifying the employee’s tax exemption status in the Federal and State sections. The field’s drop-down list include the following choices. Select: N - Not Exempt - Employee’s earnings are subject to tax withholding during payroll processing. W - Without Withholdings - Employee is exempt from tax withholding but requires a W2 form for reporting earnings. This will accumulate a W2 gross but not calculate taxes. Y - Exempt, No W2 - Employee is exempt from tax withholding and does not require a W2 form (no wages are accumulated).
Current (State)	State section only. The drop-down list for the respective field includes the standard state abbreviations. This entry combines with the pay frequency and marital status to identify the specific state that applies to the employee.
Status	Employee’s tax filing status. The standard selections for the field’s drop-down list include Married and Single, though there may be others depending on the status fields in your tax tables. This entry, in combination with the pay frequency, identifies the federal tax table to use in payroll processing. The state and local tax tables are identified by three fields: Pay Frequency, State, Federal or Locality, and Tax Status. This is a required field for all Federal, State and Local (default status) tax records.
Dependents	Number of dependent exemptions claimed by the employee. The system multiplies this value by the applicable tax table’s dependent amount to determine the employee’s exemption amount in a given pay period. Example: If a tax table lists 90.38 as the bi-weekly dependent exempt amount and the employee claims 3 dependents, the system calculates 271.14 (90.38 x 3) as the exemption allowed in each bi-weekly pay run. On local taxes, each locality record has this data.
Additional Withhold	Additional withholding amount requested on the employee’s W4 form, if any. The system adds this to the tax calculated during a pay run, but only for the employee’s primary job class. However, if the Always Take Additional Withholdings checkbox in the Human Resources Profile is selected, the additional withholding will be taken every time the employee is paid. On local taxes, each locality record has this data. Decimal/12,2
Active	Local section only. Actions that can be taken to determine a status of the local tax code. Select: A - Active D - Delete I - Inactive
Type	Local section only. The type of location code associated. Can be School, Residential, or Other. Defaults from Local Tax Code.
Taxable %	Local section only. The percent of the gross subject to which this tax locality applies. For example, if someone has split residential taxes, perhaps 50% of salary goes to each of the taxes entered. By default, this value should be 100%.
Tax Override %	Local section only. Alternate percentage to use for the tax calculation rather than the default from the Local Tax Code table.