Taxes

Human Resources > Workforce Administration > Search > Employee > Payroll Data

The default grid in this section contains the open, active tax data that applies to the selected employee as of the date on the timeline. It also contains future-dated tax data not already associated with the date on the timeline.

Each tax type corresponds to a row in the grid.

In the Withholding Status column of the grid, an employee's number of elected exemptions appears next to each withholding status.

A column of check boxes on the far-left of the grid lets you create end events for multiple taxes at once. Select the check box next to each tax that applies. To select or deselect all taxes in the list, select the check box in the column header.

If you select multiple taxes at once, the end date defaults to the last one used in payroll, but you may change the date. If there is not a last used in payroll end date, the end date defaults to the latest start date.

  • If the selected taxes have different last processed dates, the default effective date is the last processed date.
  • If the selected taxes have different last processed dates and one tax has a start date later than the other last processed dates and does not have a last processed date, the default effective date is the start date.
  • If all taxes do not have a last processed date but have different start dates, the default effective date is the latest start date.

To add a tax, click the New button, located on the left side of the section header. A New Tax pop-up opens, asking you to select a Tax Type and Tax Code.

After making your selections, click OK. A Tax Detail section corresponding to the type of tax selected opens below the grid, with fields enabled for entry.

For a new employee, the default tax profile, as set up in Maintenance, populates the appropriate fields automatically. This data may be edited.

To edit a tax, click the edit icon , located in the far-left cell of the appropriate row. A Tax Detail section corresponding to the type of tax selected opens below the grid.

Note: If an existing tax has been used in a payroll, or if a payroll containing the tax has been printed but not posted, the section opens in view-only mode, with a message saying the entries cannot be changed.

Once you have made your selections, click Save to save them, close the Tax Detail section and update the grid in the Taxes section. To save the selections and clear the fields in the Tax Detail section, making them available for the entry of another tax, click Save/New.

Based on the type of tax selected, fields differ. Click a tax type link below to see descriptions of the fields that display in the Tax Detail section:

Note: An employee may not have more than one federal tax code that is active at the same time.

Field Description
Effective Date

Required. First date the tax applies to the employee's pay. This field may contain a future date.

Once you save the tax code, the default entry displays [Date Saved] - <Open>. If the code is edited on a future date, the Effective Date changes to show [Date Saved] - [Date Ended], and the Effective Date of the new or changed version of the code displays [Date Saved] - <Open>.
End Date

Day the tax ends. This entry may be edited.

Note: This date cannot be later than the Effective Date of a subsequent tax record.
Tax Type

Required. Tax type set up at Maintenance > Human Resources > Deductions and Benefits > Taxes. Once this Tax Type is used in a payroll, it cannot be edited.

An employee cannot have more than one active federal tax type set up.
Code Identifies the federal tax, typically an abbreviated, easily recognizable version of the full description. Click in the field to select from a drop-down of valid codes for the Tax Type selected. Tax codes are set up at Maintenance > Human Resources > Deductions and Benefits > Taxes.
Exempt Identifies whether the employee is exempt from this tax. Checking this box disables the Number of Exemptions field.
Withholding Status Employee's filing status for the Tax Type selected. Click in the field to select from a drop-down of valid statuses.
Number of Exemptions Required if Exempt box is unchecked, number of exemptions the employee is claiming for the Tax Code selected.
Last Used in Payroll Date the tax last was used in a payroll.
Additional Amount Dollar amount to be added to the calculated tax amount. A negative amount is allowed. A negative amount reduces the amount of tax per pay period.
Additional Percentage Percentage of pay to be added to the calculated tax amount.
3 W4 Dependent Exemption Annual tax credit amount that reduces the taxes withheld.
4a Other Income Other income amount that increases the annual taxable income.
4b Other Deductions Other deduction amount that decreases the annual taxable income.
Additional Federal Taxes
FICA Federal Contributions Insurance Act. Tax used to fund the social security system. If a FICA tax is not set up for an employee, a warning displays on the Payroll Initialization Audit Report when a payroll is initialized.
Medicare Tax that pays for the medical benefits of people aged 65 and over. If a Medicare tax is not set up for an employee, a warning displays on the Payroll Initialization Audit Report when a payroll is initialized.
FUTA Federal Unemployment Tax Act. Employer tax used to fund state workforce agencies.
EIC Earned Income Credit. Refundable tax credit.
Withholding Status Employee's filing status for the Tax Type selected. Click in the field to select from a drop-down of valid statuses.

Note: An employee may have tax codes from multiple states but only one code per state.

Field Description
Effective Date

Required. First date the tax applies to the employee's pay. This field may contain a future date.

Once you save the tax code, the default entry displays [Date Saved] - <Open>. If the code is edited on a future date, the Effective Date changes to show [Date Saved] - [Date Ended], and the Effective Date of the new or changed version of the code displays [Date Saved] - <Open>.
End Date

Day the tax ends. This entry may be edited.

Note: This date cannot be later than the Effective Date of a subsequent tax record.
Tax Type Required. Tax type set up in Maintenance. Once this Tax Type is used in a payroll, it cannot be edited.
Code Identifies the state tax, typically an abbreviated, easily recognizable version of the full description. Click in the field to select from a drop-down of valid codes for the Tax Type selected.
Exempt Identifies whether the employee is exempt from this tax. Checking this box disables the Number of Exemptions field.
Withholding Status Employee's filing status for the Tax Type selected. Click in the field to select from a drop-down of valid statuses.
Number of Exemptions Required if Exempt box is unchecked, number of exemptions the employee is claiming for the Tax Code selected.
Additional Exemption Displays for Illinois employees.
Dependent Exemption Displays for Indiana employees.
Last Used in Payroll Date the tax last was used in a payroll.
% of Federal W/H

Enabled only if the state has been set up to be a percentage of federal withholding.
Additional Amount Dollar amount to be added to the calculated tax amount.
Additional Percentage Percentage of pay to be added to the calculated tax amount.
SUTA State unemployment taxes.

Note: An employee may not have more than one FICA or Medicare tax code that is active at the same time.

Field Description
Effective Date

Required. First date the tax applies to the employee's pay. This field may contain a future date.

Once you save the tax code, the default entry displays [Date Saved] - <Open>. If the code is edited on a future date, the Effective Date changes to show [Date Saved] - [Date Ended], and the Effective Date of the new or changed version of the code displays [Date Saved] - <Open>.
Tax Type Required. Tax type set up in Maintenance. Once this Tax Type is used in a payroll, it cannot be edited.
Tax Code Identifies the FICA, Medicate, FUTA or SUTA tax, typically an abbreviated, easily recognizable version of the full description. Click in the field to select from a drop-down of valid codes for the Tax Type selected.

Note: An employee may have multiple, other tax codes that are active at the same time.

Field Description
Effective Date

Required. First date the tax applies to the employee's pay. This field may contain a future date.

Once you save the tax code, the default entry displays [Date Saved] - <Open>. If the code is edited on a future date, the Effective Date changes to show [Date Saved] - [Date Ended], and the Effective Date of the new or changed version of the code displays [Date Saved] - <Open>.
End Date

Last day the selected tax is in effect.
Other Tax View-only label showing the Tax Code selected.
Exempt Determines whether the employee is exempt from this tax. Checking this box disables the Withholding Status and Number of Exemptions fields.
Withholding Status Employee's filing status for this tax. A selection in this field disables the Exempt check box and requires an entry in the Number of Exemptions field.
Number of Exemptions Number of exemptions the employee claims for this tax. An entry in this field requires a selection in the Withholding Status field and disables the Exempt check box.
Last Used in Payroll Last date this tax was used in a payroll. This date is view-only. If the tax has not been used in a payroll, "NOT USED" is displayed.
Additional Amount Additional tax amount to be added to the calculated tax amount.
Additional Percent Additional tax percentage to be added to the calculated tax amount.

The Workers' Benefit Fund (WBF) assessment tax is calculated every pay period as a rate per hour worked, based on the rate set up for the employee and employer.

If the employee and employer have the same rate, the calculated employee amount never is more than half of the combined employee and employer rate.

By default, the WBF tax applies to all hours codes. To specifically exclude the tax from an hours code, go to Hours Codes maintenance (Maintenance > Human Resources > Earnings Maintenance > Hours Codes), select an hours code, and click the Tax Information button.

Field Description
Effective Date

Required. First date the tax applies to the employee's pay. This field may contain a future date.

Once you save the tax code, the default entry displays [Date Saved] - <Open>. If the code is edited on a future date, the Effective Date changes to show [Date Saved] - [Date Ended], and the Effective Date of the new or changed version of the code displays [Date Saved] - <Open>.
End Date

Last day the selected tax is in effect.
WBF Tax View-only label showing the Tax Code selected.
Last Used in Payroll Last date this tax was used in a payroll. This date is view-only. If the tax has not been used in a payroll, "NOT USED" is displayed.

Once you have made your selections, click Save to save them, close the Tax Detail section and add the tax to the grid in the Taxes section. To save the selections and clear the fields in the Tax Detail section, making them available for the entry of another tax, click Save/New.

Enabled when a row in the grid is selected, the Create Event button creates a new effective-dated period for the tax code selected, copying forward the current data to be used as the basis for creating the new version of the tax code.

Clicking the button opens a pop-up that asks for the Effective Date of the new version. The default entry is the day after the last day the current tax code was used in a payroll. If the tax code has not been used in a payroll, the default entry is today's date.

In either case, the date may be edited, but it must be later than or the same as the Effective Date of the tax code selected.

Note: The effective-dated periods of a selected tax code cannot overlap.

Once the date is selected and the pop-up closed, the Tax Detail section opens in edit mode directly below the grid, with data from the original tax code copied to the new Effective Date. If the End Date of the original tax code was Open in the Date Range column of the grid, it closes with the Effective Date of the new version of the tax code, and the new version displays an Open End Date.

Note: If an employee’s tax detail is edited after the employee’s pay check has been calculated in a payroll, and if the edit date falls within the payroll date range, a warning displays, saying that proceeding invalidates the employee’s calculated payroll and requires it to be recalculated.

Enabled when a row in the grid is selected, the End Event button opens a pop-up that asks for the date the employee no longer is subject to the selected tax.

Note: This date may not be earlier than the last date the tax was used in a payroll or later than the start date of a subsequent version of the tax.

After selecting the date, click OK. Once the tax has ended, the start and end dates display in the Date Range column of the grid.

To delete a tax from the grid, click the delete icon , located immediately to the left of the Tax Type cell in the appropriate row. A prompt asks you to confirm the delete.

Only the tax record for the effective-dated period selected is deleted. The End Date of the prior record updates accordingly. If the deleted record falls between two dates, the End Date of the prior record sets to one day less than the Start Date of the next record after the deleted record.

A prompt displays to verify that the user does intend to delete the currently selected deduction record.

Note: A tax type that has been used in a payroll cannot be deleted.

If multiple events have resulted in tax type changes, you may view the other tax types and their effective dates by clicking the arrows of the navigation control , located on the right side of the section header.