Setting up payroll calculations

Working with 5-Payroll > 5-3 Payroll Management > 5-3-1 Payroll Calculations > Setting up payroll calculations

Setting up payroll calculations

The taxes to which calculations are subject vary by province or city. Verify the selections with your accountant, or if it is a benefit, the benefit plan administrator. For details on setting up tax calculations for specific provinces or cities, see Appendix D-Tax Setup Information.

Caution! Verify that all your calculations are correct before computing your payroll by running a trial-compute. If you are unsure about the results, contact Customer Support or your business partner for assistance.

To set up payroll calculations:

Open 5-3-1 Payroll Calculations.

In the data control box, enter the number you want to assign the new calculation.

In the Description box, enter a brief statement about the calculation.

In the Tax Type list, click the tax type.

In the Calculation Type list, click the calculation type.

In the Calculation Method list, click the manner in which the calculation is computed.

Important! When you use calculation method 17-Tables for federal or province income taxes, Sage 100 Contractor sets the rate. The rate does not appear in the payroll calculation or the employee record.

When available, do the following:

In the Default Rate box, enter the standard calculation rate.

In the Default Max box, enter the calculation maximum.

In the Max Type list, click the type of maximum for the calculation.

In the Job Expense, Shop Expense, Overhead Expense, and Admin Expense boxes, enter the ledger account number that you want to debit.

In the Credit Account box, enter the ledger account number that you want to credit.

In the Credit Subaccount box, enter the ledger subaccount number that you want to credit.

(Optional) If you want to use the employee number as the subsidiary account number, click Use employee# as subaccount.

Important! The Credit Account and Credit Subaccount are typically liability accounts. You must specify a Credit Account, but a Credit Subaccount is only necessary dependent upon your general ledger setup.