Taxes & Deductions

Overview

The “Taxes & Deductions” tab is where the payroll related items reside. You can create new, or modify existing, manually added deductions for to profiles and payroll entries, add new local taxes, and manage work comp codes.

Detail

The flat rate, hourly, and gross tabs have the same options available for deduction creation, with their own logic which is detailed below. This is typically a percent i.e. .5 = 50%, except in the case of the “Rate-Type” being “Flat” then this field is treated as straight money i.e. 5.00 = $5.00)

-Flat Rate is a dollar amount from the check

-Hourly will deduct a flat amount per hour on the check

-Gross is a % of gross from the check which also has the option to exclude from reimbursements

-Taxable is a % of what is taxable from the check

-% of Net will deduct a % of the check after taxes have been removed

Each deduction type has a slight variation of the options available, but list common fields specific to that entry. Each entry will function according to the tab that it’s under (flat rate, gross, etc.) with the additional variations and defaults that are selected below.

Field Details:

-Name is the title of the deduction

-Type selects if the deduction applies to the Employee or Company

-Default Rate will default to this rate when added

-W2 Box/W2 Code specify the code and box referenced when exporting W2 information

-Debit/Credit pull from the chart of accounts and are referenced on reports and the closing module

-Account #/Tax Code are informational only, and are typically only used for unique circumstances

-Internal Debit/Credit specify the relevant chart of accounts when used in the internal payroll module

-Mandatory will apply the deduction whether on the personnel profile or not

-Cost of Good determines if the tax/deduction is classified in the CoG category on the Income Statement Report found in the Reporting Module

-Pre-Tax determines if the deduction comes out before or after taxes

-Quote will use the deduction in calculations in the quotes module by default

-Exclude Reimbursements If the box is checked, the deduction wont apply to payments made with the pay type (reg, OT, Sick, DT) of reimbursement

-Exempt Boxes on the right, if checked, will have the deduction taken out before the selected tax

The “Federal, State Tax, County, City, and School” tabs are location specific taxes that apply to the address entered on the personnel profile. As the software utilizes a 3rd party company to maintain taxes taken out automatically, typically no modifications are needed except state tax, which needs to be activated. Certain tabs allow you to specify a different rate or enter in a calc code to dictate your own locality-based taxes and specify if it’s a resident or workplace deduction.

The “SUTA and FUTA” tabs allow you to activate and specify the rates used in the state and federal based taxes. These deductions also carry the option to make mandatory for state which will include the item in payroll calculations and can check the quote box if you want to include the tax in quote calculations.

The “SDI and FLI” tabs are where you can insert State Disability Insurance and Family Leave Insurance entries. The same variables and options for rates and state selection available on other deductions are listed here, and the steps to insert a new entry are:

Steps:

-Click insert

-Type the name of the deduction

-Select the state

-Select the debit and credit

-Click save

The “Work Comp” tab is where you can insert new and modify existing work comp codes. The deductions are state specific and are referenced in the customer>job site>position tab when entering in position information. You also can mark the deduction to have it calculate OT work comp hours as REG hours.

The “Recommended Skills” tab allows you to right click>add Item to list what skills would be suggested for someone to have when working a position with the associated comp code.

The “Other” Taxes & Deductions tab is typically used for Essential Staff Care (ESC) Insurance entries. For more information regarding Essential Staff Care Insurance, refer to the Essential Staff Care Insurance Documentation.