If you choose to create the standard calculations, you must do so before setting up any calculations manually.
Even though some states do not have state income tax, the state income tax calculation must be set up in the 5-3-1 Payroll Calculations window so that the Workers’ Compensation report prints correctly. Also, the state income tax calculation must be set up so that W-2 forms calculate correctly.
For details on setting up tax calculations for specific states
1 | Open 5-3-1 Payroll Calculations. |
2 | On the menu bar, click Options, then click Create Standard Calculations. |
3 | Carefully review each standard payroll calculation. |
4 | Some of the account numbers may need to be modified. If you used the Sage 100 Contractor standard 4-digit or 5-digit chart of accounts and have not made modifications, the account numbers will be correct. If you have used or created another chart of accounts or modified one of the standard ones, you will need to review each of the account numbers carefully. |
5 | For each state tax calculation, you must enter the state abbreviation in the State text box. |
6 | For the State Disability Insurance and the State Unemployment Insurance calculations, you must enter the Default Rate, Default Maximum, and Max Type. |
7 | Set up any additional calculations. |
About tax tables for setting up federal and state tax calculations |
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