Create Tax Profiles for Calculating Payroll Taxes Home | FAQs & Troubleshooting

 

Tax profiles consist of one or more tax locations, and each tax location includes multiple tax groups. For each tax group, you can specify which of the individual taxes will be calculated when processing payroll.

 

Follow this procedure to create tax profiles for your employees.

To create a tax profile

1. Select Payroll Setup menu > Tax Profile Maintenance.
2. In the Profile field, enter a code for this profile. For more information, see Tax Profile Maintenance - Fields.
3. Enter a description to identify this profile. For example, "Works in OH, lives in KY."
4. Enter a tax location code. If a default tax location is entered in Payroll Options, it appears in the first row, but you can delete the row and enter a different tax location if needed.
5. Select a location type for the tax location.

6. In the Tax Group Details area, review the taxes included for each tax group. If a check box is selected for a tax, the tax will be included in the tax calculation. Select or clear the tax check boxes as needed.

   Note If you don't see the tax groups after selecting the location type, press the Tab key or click in the next row.

7. Add as many additional tax locations as needed. For example, if you have employees who work in Ohio and live in Kentucky, and you need to calculate taxes for both states, select a tax location for each.

   Note You can designate only one Work location and one Residence location for each tax profile. If you select Both as the location type, you cannot select Work or Residence for another tax location within the profile.

   As you add tax locations, the associated tax groups are added to the Tax Group Details area.

8. Click Accept.

The tax profile is available to select in Employee Maintenance. Continue adding as many tax profiles as needed.