Company Tax Group Setup

Tax Group

Enter a tax group or click the Lookup button to view a list of all tax groups.

 

Description

This field displays the tax group description and can only be viewed.

 

1. Main

 

Tax ID No.

Enter the tax ID number for the tax group.

For the Federal tax group, this field displays the tax ID number entered in Company Maintenance and can only be viewed.

 

Unemployment Tax ID No.

Enter your state unemployment tax ID number.

If you leave this field blank, the number in the Tax ID No. field will be used in Federal and State Tax Reporting.

This field available only for state tax groups.

 

Round Withholding Tax Amount

Select this check box to round the withholding tax amount to the nearest dollar for the selected tax group. Anything less than .50 will be rounded down, and anything greater than or equal to .50 will be rounded up. Clear this check box if you don't want to round the withholding tax amount.

Ensure that the tax jurisdiction allows rounding before selecting this check box. The withholding amount will be rounded, even if rounding is not allowed by the tax jurisdiction. However, if the tax jurisdiction requires rounding, the withholding amount will be rounded even if this check box is cleared.

 

Tax

This field displays the tax description and can only be viewed.

 

G/L Account No.

Enter a general ledger account number or click the Lookup button to view a list of all general ledger accounts.

This accrual account will be credited with the tax amount.

 

G/L Account Description

This field displays the general ledger account description and can only be viewed.

Vendor No.

Enter the vendor number to create an Accounts Payable invoice for this tax.

Vendor Name

This field displays the vendor name and can only be viewed.

Invoice Prefix

Enter a prefix to use for the invoice number. The prefixes are used, along with the vendor number, to group taxes into one invoice when running the Payroll Check Register Update.

 

 

2. Additional

 

Tax

This field displays the tax description and can only be viewed.

 

G/L Account No.

Enter a general ledger account number or click the Lookup button to view a list of all general ledger accounts.

This accrual account will be credited with the tax amount.

 

G/L Account Description

This field displays the general ledger account description and can only be viewed.

Vendor No.

Enter the vendor number to create an Accounts Payable invoice for this tax.

Vendor Name

This field displays the vendor name and can only be viewed.

Invoice Prefix

Enter a prefix to use for the invoice number. The prefixes are used, along with the vendor number, to group taxes into one invoice when running the Payroll Check Register Update.

 

3. Tax Rates

 

Tax

Select a tax. The taxes available are determined based on the selected tax group.

 

Effective Date

Enter the effective date for the tax rate or click the Calendar button to select a date from the calendar.

The payroll check date is compared with the effective date to determine which tax rate is used.

For example:

• Your pay period runs from June 24 through July 6.
• Your check date is July 7.
• Your tax rate has July 1 as the effective date.

The rate with the effective date of July 1 is used to calculate the tax for the entire pay period beginning June 24.

Rate

Enter your employer-specific tax rate.

 

No Wage Cap

Select this check box if the wage cap for this tax does not apply to your company. Clear this check box if the wage cap is applicable for your company.

This check box is available only for taxes with a wage cap that is not applicable to some types of businesses.

As of July 1, 2019, examples of taxes that may use the No Wage Cap option are the Kansas, Montana, Oregon, and Washington unemployment tax and the Montana employer assessment tax.

 

Alternate Wage Cap

Select this check box if your company is subject to an alternate wage cap. The correct wage cap will be automatically used when payroll taxes are calculated.

Clear this check box if your company is not subject to an alternate wage cap.

This check box is available for taxes with alternate wages caps that apply only to some businesses.

As of July 1, 2019, examples of taxes that may use an alternate wage cap are the Rhode Island unemployment tax (alternate wage cap is $25,100 for high wages earners instead of standard wage cap of $23,600), and the Michigan unemployment tax (alternate wage cap is $9,500 for delinquent employers instead of the standard wage cap of $9,000).