New Edit Tax Table - Pay Type Exclusions

This screen provides flexibility to designate tax exempt status by pay type for income tax (employee), FICA/SDI (both employer and employee), unemployment (employer) and workers' compensation (employer).

No maintenance is required on this screen if all pay types are taxable. If a particular pay type is to be exempt for a given tax table code, select the applicable Exempt checkboxes. This will result in the "subject to" earnings being adjusted during the check calculation for exempt pay types.

  • This screen can be used to set up special handling for payroll situations like accounting for third party sick pay. In this case, the employer must pay only employer FICA. Using this screen, one pay type can be designated for sick pay, and non-applicable taxes such as worker's compensation and unemployment can be exempted.

  • For each taxing authority, this screen can be used to indicate the taxability of each individual pay type. For instance, an annual bonus might be subject to state income tax, but not to worker's compensation.

  • When the tax code is set to US, FICA columns will display instead of Disability columns.

  • When the Federal checkbox is selected, the Worker's compensation column will not display.