Sage HRMS Payroll supports statutory payroll taxes such as federal and state income taxes, social security tax, medicare tax, payroll insurance taxes such as FUTA and SUTA, as well as Puerto Rico income tax, and city income taxes for New York City and Yonkers.
The payroll program calculates these taxes by using system-installed tax tables. If you subscribe to tax updates, you receive new releases of the tax table update when authorities revise their tax structures. Documentation is included with the tax update.
To see a list of tax tables supported by Payroll, click the button at the bottom of the Federal and State Taxes setup window.
Tabs on the Federal and State Tax Codes Window
- Basic Info. Used to add (activate) federal and state taxes.
- Calc Base. Used to determine which earnings, deductions, and other taxes to include in calculation of the tax.
- G/L Dist. Used to set up default general ledger distribution accounts.
- Optional Fields. Used to include additional information about the tax.
Using the Federal and State Tax Codes Window
Use this window to configure federal and state taxes before assigning them to your company’s employees.
Configure (add) new federal and state taxes. After you configure all the federal and state taxes you need to process your company’s payroll. Return to this window to make modifications and to delete taxes you no longer need.
Edit or delete existing federal and state taxes on this window. The changes you make on the Federal and State Tax Codes window will become the default information for future (new) employees only — the tax information already assigned on existing employee records will not reflect the changes.
To change the taxes already assigned to employee records, use the Update Taxes window. This window applies your modifications to all employees to whom the tax has been assigned. The system will use the information the next time you process timecards.