Setting up payroll calculations
The taxes to which calculations are subject vary by state or region. 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 states and municipalities, 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:
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1
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Open 5-3-1 Payroll Calculations. |
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2
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In the data control box, enter the number you want to assign the new calculation. |
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3
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In the Description box, enter a brief statement about the calculation. |
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4
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In the Tax Type list, click the tax type. |
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5
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In the Calculation Type list, click the calculation type. |
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6
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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 state income taxes, Sage 100 Contractor sets the rate. The rate does not appear in the payroll calculation or the employee record.
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7
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When available, do the following: |
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a
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In the Default Rate box, enter the standard calculation rate. |
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b
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In the Default Max box, enter the calculation maximum. |
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c
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In the Max Type list, click the type of maximum for the calculation. |
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8
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In the Job Expense, Shop Expense, Overhead Expense, and Admin Expense boxes, enter the ledger account number that you want to debit. |
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9
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In the Credit Account box, enter the ledger account number that you want to credit. |
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10
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In the Credit Subaccount box, enter the ledger subaccount number that you want to credit. |
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a
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(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.
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11
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Under Subject to, verify the deductions to which the calculation is subject. |
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a
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If the calculation is for a specific state, enter the state abbreviation in the Tax State box. |
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b
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If the calculation is for a specific local payroll tax district, click the district number in the Tax Locale list. |
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a
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To include the calculation on a union report, select the union from the Union list. |
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b
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To include the payroll calculation on certified payroll reports, select the type of benefit in the Benefit list. |
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14
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To report the calculation total in box 11, 12, 13, or 14 of the W-2, enter the box number in the W-2 Box field. |
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15
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To include a special code on the W-2, enter the code in the W-2 Code box. |
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16
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Select the following payroll calculation check boxes if applicable: |
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a
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Use in Paygroup Benefits |
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d
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Default to New Employees |
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17
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On the File menu, click Save. |