How to Set Up Oceania (Micronesia, Marshall Islands, and Palau) Taxes in Sage 100 Payroll

Complete the following process to set up Oceania taxes.

Create an Earnings Code

You must set up an earnings code to use a tax rule that is specific for calculating Oceania taxes.

1. Select Payroll Setup menu > Earnings Code Maintenance.
2. Enter a new earnings code and description.
3. Set up as usual in each applicable field except for the Tax Rule field.
4. Click the Lookup button at the Tax Rule field, and select one of the following Compensation Tax Rules:

   Tip: The tax rule description starts with Oceania Library.

• -905001 - Oceania Library – Salary Wages
• -905003 - Oceania Library – Bonus Wages
• -905005 - Oceania Library – Commission Wages
• -905007 - Oceania Library – Holiday Wages
• -905009 - Oceania Library – Sick Leave Wages
• -905011 - Oceania Library – Overtime Wages
• -905013 - Oceania Library – Shift Premium Wages
• -905015 - Oceania Library – Hourly Wages
• -905017 - Oceania Library – Vacation Leave Wages
5. Click Accept.

Create a Deduction Code

If applicable, set up a deduction code to use a tax rule that is specific for calculating Oceania taxes.

1. Select Payroll Setup menu > Deduction Code Maintenance.
2. Enter a new deduction code and description.
3. At the Deduction Type field, select Pension Plan or Cafeteria Plan.
4. Set up as usual in each applicable field except for the Tax Rule field.
5. Click the Lookup button at the Tax Rule field, and select -906002 - Oceania Library - Regular Post Tax Employee Deduction.
6. Click Accept.

Set Up General Ledger Accounts in Company Tax Group Setup

Enter the applicable general ledger accounts for Oceania tax group.

1. Select Payroll Setup menu > Company Tax Group Setup.
2. Click the Lookup button at the Tax Group field, and select one of the following Oceania Tax Groups:
• FM - Federated States of Micronesia
• PS – Palau
• RM – Marshall Islands
3. On the Main tab, select a G/L Account at the Withholding field.
4. On the Additional tab, select a G/L Account at each applicable field.
5. Click Accept.

Create a Tax Profile

Create a tax profile for each applicable Oceania tax group.

1. Select Payroll Setup menu > Tax Profile Maintenance.
2. Enter a new profile name and description.
3. Click the Lookup button at the Tax Location Code field, and select one of the following:
• FM - Federated States of Micronesia
• PS – Palau
• RM – Marshall Islands
4. At the Location Type field, select Both.
5. In the Tax Group Details section, verify that the selected taxes are correct for this tax profile. If necessary, clear the check boxes for any taxes that you do not want to calculate.

   Note: If you do not verify that the correct taxes are selected, your tax calculations may be incorrect.

6. Click Accept.

Assign a Tax Profile to an Employee

Assign an applicable Oceania tax profile to your employee.

1. Select Payroll Setup menu > Employee Maintenance.
2. Select an employee.
3. On the Taxes tab, select the applicable Oceania tax profile at the Default Tax Profile field.
4. Click Accept.

Processing Payroll

When processing payroll for Oceania employees, in order for Oceania taxes to calculate, you must use an earnings code(s) created above which is set up with an Oceania tax rule.

Converting from Sage 100 Legacy Version

If you're converting data from a legacy version of Sage 100, please contact Sage Support to assist you. Depending on how your taxes are set up in Sage 100 legacy version, a program fix may be needed to convert your data accurately.