Use the Taxes tab in Employee Maintenance to select one or more tax profiles and the tax locations for the employees' state of residence and the state in which they work. These selections determine which taxes in the associated tax groups are calculated when running Payroll Tax Calculation.

Important Before setting up employees, you must set up tax profiles in Tax Profile Maintenance. For more information, see Create Tax Profiles for Calculating Payroll Taxes.

 

To set up an employee's payroll tax calculation

1. Select Payroll Main menu > Employee Maintenance.

2. Select an employee and go to the Taxes tab.

3. Select the default tax profile for the employee. The tax groups for that tax profile appear in the grid below. The Default check box for each tax group is automatically selected and the descriptions appear.

4. In the grid, make selections for the remaining fields. Fields such as Filing Status and Workers Comp are available if an entry is required for the tax group. For more information, see Employee Maintenance - Fields.

   For more information on filing statuses, see Filing Status Codes.

5. If more than one tax profile is applicable for the employee, click the Add Tax Profiles button to the right of the grid, and select one or more additional tax profiles. When you click OK, the tax groups for the selected profiles are added to the grid on the Taxes tab.

6. In the Tax Locations area, the Residence and Work state codes are automatically entered based on the default tax profile. Verify that the default entries are correct, and change them if necessary.

7. Click Accept.

The employee's tax profile(s) are now set up and can be selected in Payroll Data Entry.

.