Steps
to Add a Taxes Payable EntryNote: Typically, you should not attempt to add a new tax on your own. If a new tax needs to be added, contact Customer Support for assistance so they can verify the correct tax table is defined and available in the School Accounting System.
From the Payroll screen, select the Maintenance menu and then Taxes.
Note: If desired, to access the Tax File from Negotiations (if applicable), select the Payroll menu from the Negotiations screen and then Taxes.
At the Taxes screen, click the New Record button.
Note: For any field equipped with the repeat function, click the Repeat button or press the Ctrl+R keys to repeat the previous entry for the specified field. The repeat function is only available after your initial entry.
Click the General tab to complete the general information for the tax.
Enter a unique ID for the tax in the Tax ID field. The ID can be alphanumeric and up to 10 characters long (no spaces).
Note: To have the system automatically assign the ID using the first 10 characters (letters and numbers only) of the description (as entered in the Tax Description field), leave the ID field blank; once the record is saved, the ID will be assigned.
Select the Active field to stipulate the tax is currently active and used by the district. A checkmark will appear in the box if the field is selected. When adding a new tax, the Active field is selected by default.
Note: If the Active field is unselected (a checkmark does not appear in the box) for an existing tax, the tax will no longer be withheld or expensed for employees who previously had the tax set up.
Enter the appropriate type for the tax in the Tax Type field, or click the down-arrow button to select the correct one. The available types are: Earned Income Credit, Federal Income Tax, Federal Unemployment Tax, Local Income Tax, Medicare, Social Security, State Income Tax, State Unemployment Tax, or Workers Compensation.
Note: The Tax Type of Earned Income Credit is no longer applicable effective January 1, 2011, and so should not be used.
If State Income Tax, State Unemployment Tax, or Workers Compensation is specified as the Tax Type, the State/Province field will be enabled. In the State/Province field, enter the appropriate state abbreviation for the tax. If the state abbreviation is not known, click the down-arrow button to select the correct one.
Note: Only the state abbreviations and province codes for the United States appear when searching.
Tip: The following states have the state income tax rate tables defined for the current year within the School Accounting System: Alabama, Colorado, Idaho, Illinois, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, New York, North Dakota, Ohio, Virginia, and Wisconsin.
If Local Income Tax is specified as the Tax Type, the City field will be enabled. In the City field, enter the appropriate 2-digit city code for the tax. If the city code is not known, click the down-arrow button to select the correct one.
Tip: The following cities have the local income tax rate tables defined within the School Accounting System: Kansas City and Saint Louis.
Enter a description for the tax in the Tax Description field. The description can be up to 40 characters long.
Enter the description for the tax that will print on the employee check stubs in the Tax Check Description field. The description can be up to 15 characters long.
Note: If two or more taxes have the same check description, those taxes will be combined on the check stubs, the Payroll Register reports, and the Distribution Report by Expense Account (with Detailed or Summary Earnings).
Tip: Enter an asterisk (*) as the first character of the check description to have the system combine this tax with others (that also have an asterisk as the first character of the check description) on the check stub using OTHER YTD DED as the description. The total for the taxes (and deductions, if applicable) using the OTHER YTD DED description will be split out (print with a separate line and subtotal) for those that are taxes, retirement deductions, and other deductions.
If applicable, enter the ID assigned to the school district for the tax in the School ID Number field. The ID can be alphanumeric and up to 20 characters long.
In the Payables Mask field, enter the mask for the balance sheet payable account that will retain the money withheld or expensed for the tax until the check is written. When entering the mask, be sure to follow the balance sheet account structure defined for your organization, key spaces between the account dimensions, and use Xs as placeholders.
If all or part of the tax is paid by the employer, enter the mask for the expenditure account to be debited for the employer's share of the tax in the Expense Mask field; when the employer's share of the tax is expensed during a check cycle, the placeholders for the mask will be replaced with the valid account dimensions from the salary expense accounts defined for the employees. Leave this field blank if the tax is only paid by the employees. When entering the mask, be sure to follow the expenditure account structure defined for your organization, key spaces between the account dimensions, and use Xs as placeholders.
Note: The Expense Mask field is disabled and not applicable for taxes with a Tax Type of Federal Income Tax, State Income Tax, or Local Income Tax.
Complete the Payee Check Information section for the tax.
To have the system automatically print a check during the Payroll check cycle for the amounts withheld and expensed for the tax, enter the ID of the payee for which to write the check in the Payee ID field. If the ID is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature. If the Payee ID field is left blank, the system accumulates the amount withheld and expensed in the specified payable account(s) in General Ledger but will not print a check for the tax during a Payroll check cycle.
Note: Only the active payees appear by default when searching, but the filters can be changed if needed.
If desired, to not print a check to the specified payee (entered in the Payee ID field) but have the amount that is withheld and expensed for the tax accumulate in the specified balance sheet payable account(s) in General Ledger and tracked in the Taxes Payable option in Payroll (so that a check can be written from Payroll at a later time), select the Hold Check field. A checkmark will appear in the box if the field is selected.
Note: If needed, there is also a Hold Check field on the Taxes Payable screen that can be utilized (selected) instead to not print the check for the tax for just a particular checking account and fund.
To have the check write to the specified payee (entered in the Payee ID field) only when completing a Payroll check cycle for a particular pay group, enter the ID of the desired pay group in the Pay Group ID field. If the ID is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature.
Complete the Report Options section for the tax.
Select the Print Gross Wages field to print the taxable gross calculated for the tax on the Deduction Register. A checkmark will appear in the box if the field is selected.
Select the Print Employee Social Security Number field to print the social security numbers for the employees on the Deduction Register for the tax. A checkmark will appear in the box if the field is selected.
Select the Print Employee ID field to print the IDs for the employees on the Deduction Register for the tax. A checkmark will appear in the box if the field is selected.
Only if the tax is paid entirely by the employer, select the Hide on Check field to not print the information for the tax on the employee check or direct deposit stubs (or appear in Web Link, if applicable). A checkmark will appear in the box if the field is selected.
Note: If this field is selected and a portion of the tax is paid by the employee, the amounts on the employee check or direct deposit stubs will not balance to the amount of the net check.
If the Hide on Check field is not selected, the Print Employee W2 Information on Check field is enabled. If the tax is an income tax, select the Print Employee W4 Information on Check field to print the tax table and number of allowances used for calculating the tax for the employees (as entered on the Taxes screen in the Employee File) on the employee check or direct deposit stubs. A checkmark will appear in the box if the field is selected.
Note: If this field is selected, the W4 Rate Table Description field must be included as a field in the Stub Deductions section for the desired check formats in the Check Setup - Employees option. If this field is selected or unselected, the W4 information will automatically print on the Deduction Register for the tax.
In the Cross References List, select the pay codes and deductions that will be included in the taxable gross for the tax by clicking the box to the left of the desired pay code or deduction ID. A checkmark will appear in the box if the pay code or deduction is selected. If the wages from a pay code are to be included in the taxable gross for the tax, the pay code must be selected. If the employee’s share of a deduction is to be included in the taxable gross for the tax, the deduction must be selected. To select all of the IDs for the pay codes or deductions, click the box located by itself (without a label) at the top of the pay codes and the top of the deductions.
Note: If a pay code should be taxed at the supplemental rate (only applicable for FIT and SIT), click the box for Supplemental Rate that appears to the right of the pay code ID and description in the Cross References List.
Click the Save button.
Click the Tax Table tab to enter the rate information for the tax.
Note: Remember to use (enter) the annual amounts or annual table rates for the tax as the system annualizes the tax calculations.
Tip: When adding a new tax for Federal Income Tax, Federal Unemployment Tax, Medicare, Social Security, a State Income Tax, or a Local Income Tax, the tax rates for the current year and the past few years will automatically be in the system. If desired, to view the rates for the tax, enter the desired year for which to view the rate information in the Tax Year field. Use the yyyy format, or click the down-arrow button to select the correct year. Also, if needed, enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one.
If the tax is for Medicare, complete the following: 1) enter the year for which to add the rate information in the Tax Year Field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the rate (percentage) for the tax in the Tax Rate field (this is the rate paid by the employee and the rate paid by the employer; since the rates are the same for the employee and employer share, there is only one field); 3) enter the rate (percentage) for the additional medicare tax (paid only by the employee) in the Additional Tax Rate field; and 4) enter the amount of the lower limit for when the additional medicare tax should start being withheld in the Additional Tax Lower Limit field.
If the tax is for Social Security, complete the following: 1) enter the year for which to add the rate information in the Tax Year Field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the rate (percentage) paid by the employee in the Employee Percent field; 3) enter the rate (percentage) paid by the employer in the Employer Percent field; and 4) enter the maximum dollar amount that the tax can be calculated up to in the Limit field.
If the tax is for Federal Unemployment Tax or State Unemployment Tax, complete the following: 1) enter the year for which to add the rate information in the Tax Year Field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the rate (percentage) for the tax in the Tax Rate field; 3) enter the maximum dollar amount that the tax can be calculated up to in the Limit field; and 4) if applicable, select the Calculate Employer Share field to have the system calculate and pay the tax during each check cycle (a checkmark will appear in the box if the field is selected).
If the tax is for Workers Compensation, complete the following: 1) enter the year for which to add the rate information in the Tax Year Field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the rate (percentage) for the tax in the Tax Rate field; 3) enter the maximum dollar amount that the tax can be calculated up to in the Limit field; 4) if applicable, select the Calculate Employer Share field to have the system calculate and pay the tax during each check cycle (a checkmark will appear in the box if the field is selected); and 5) enter the basis (Calendar Year or Fiscal Year) for how the limit is to be calculated in the Limit Range field, or click the down-arrow button to select the correct one.
If the tax is for Federal Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) for the 2019 & Prior W4 tables, enter the annual amount to withhold for one allowance in the Dollars Per Withholding Allowance field; 5) for the 2020 & Beyond W4 with Step 2 Not Selected tables only, enter the amount from Publication 15-T used to figure the adjusted wages as designated in the Employer's Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems in the Step 2 Amount field; 6) for the Nonresident Alien tables only, enter the annual amount to add to nonresident alien wages for calculating income tax withholding in the Nonresident Alien field; and 7) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for Alabama State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) enter the amount to calculate for the personal exemption in the Personal Exemption field; and 5) complete the Tax Table List (see below for details on completing the Tax Table List).
Note: For each type of table, there will need to be two actual tables defined--one table with the supplemental rate, personal exemption, and the Tax Table List completed (with this table, the Tax Table List is defined for amounts and percent of excess to withhold), and one table with only the Tax Table List completed (with this table, the Tax Table List is defined with the schedule of standard deduction amounts entered as the Amount to Withhold).
If the tax is for Colorado State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) for tables in 2019 and prior only, enter the annual amount to withhold for one allowance in the Dollars Per Withholding Allowance field; and 5) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for Idaho, Kansas, or Minnesota State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) enter the annual amount to withhold for one allowance in the Dollars Per Withholding Allowance field; and 5) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for Illinois State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the rate (percentage) for the tax in the Percent of Gross field; 3) enter the annual amount to withhold for one allowance for the allowances claimed on Line 1 on the IL W4 form in the Dollars Per Line 1 Allowance field; and 4) enter the annual amount to withhold for one allowance for the allowances claimed on Line 2 on the IL W4 form in the Dollars Per Line 2 Allowance field.
If the tax is for Iowa State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the supplemental rate (percentage) in the Supplemental Rate field; 3) enter the annual standard deduction amount for 0 or 1 exemptions in the 0-1 Standard Deductions field; 4) enter the annual standard deduction amount for 2 or more exemptions in the 2 or More Standard Deductions field; 5) enter the annual credit amount for the first exemption in the 1st Personal Allowance field; 6) enter the annual credit amount for the second exemption in the 2nd Personal Allowance field; 7) enter the annual credit amount for the third and each subsequent exemption in the Each Subsequent Personal Allowance field; and 8) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for Michigan State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the rate (percentage) for the tax in the Percent of Gross field; and 3) enter the annual amount to withhold for one allowance in the Dollars Per Withholding Allowance field.
If the tax is for Missouri State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) enter the amount of the annual standard deduction in the Standard Deduction field; 5) enter the annual amount for the first allowance in the 1st Allowance field; 6) enter the annual amount for the second allowance in the 2nd Allowance field; 7) enter the annual amount for each additional allowance in the Additional Allowance field; 8) enter the annual limit for the individual’s federal income tax deduction in the FIT Limit field; and 9) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for Montana State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) leave the Dollars Per Withholding Allowance field blank (as it is no longer used in 2024 and beyond; was previously used to enter the annual amount to withhold for one allowance); and 5) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for Nebraska State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) enter the withholding rate (percentage) to use in completing the calculations for the Special Withholding Procedures (LB223) in the Special Withholding Rate field; 5) enter the annual amount to withhold for one allowance in the Dollars Per Withholding Allowance field; and 6) complete the Tax Table List (see below for details on completing the Tax Table List).
Note: With the Special Withholding Procedures (LB223) for calculating Nebraska State Income Tax, the system will do additional figuring during the payroll calculation to determine if the employee's state withholding tax meets the regulations of the designated withholding rate (which is currently 1.5%) or the threshold for minimum withholding set by the state tax commissioner (which is 50% of a single person with one exemption or a married person with two exemptions).
If the tax is for New York State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) enter the annual amount for the standard deduction in the Standard Deduction field; 5) enter the annual amount to withhold for one allowance in the Dollars Per Withholding Allowance field; and 6) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for North Dakota State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) for the 2019 & Prior W4 tables only, enter the annual amount to withhold for one allowance in the Dollars Per Withholding Allowance field; and 5) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for Ohio State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the supplemental rate (percentage) in the Supplemental Rate field; 3) enter the annual amount to withhold for one allowance in the Dollars Per Exemption field; and 4) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for Virginia State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the supplemental rate (percentage) in the Supplemental Rate field; 3) enter the annual amount for the standard deduction in the Standard Deduction field; 4) enter the annual amount to withhold for one allowance for the exemptions claimed on Line 1a on the VA W4 form in the Dollars Per Line 1a Allowance field; 5) enter the annual amount to withhold for one allowance for the exemptions claimed on Line 1b on the VA W4 form in the Dollars Per Line 1b Allowance field; and 6) complete the Tax Table List (see below for details on completing the Tax Table List).
If the tax is for Wisconsin State Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); 2) enter the name of the table to view in the Tax Table field, or click the down-arrow button to select the correct one; 3) enter the supplemental rate (percentage) in the Supplemental Rate field; 4) enter the annual amount to withhold for one allowance in the Dollars Per Withholding Allowance field; 5) enter the minimum amount for the annual gross earnings used to calculate the appropriate deduction amount when determining the annual net wage in the Minimum Annual Gross Earnings field; 6) enter the maximum amount for the annual gross earnings used to calculate the appropriate deduction amount when determining the annual net wage in the Maximum Annual Gross Earnings field; 7) enter the standard amount used to calculate the appropriate deduction amount when determining the annual net wage in the Standard Deduction Amount field; 8) enter the percentage used to calculate the appropriate deduction amount when determining the annual net wage in the Percentage field; and 9) complete the Tax Table List (see below for details on completing the Tax Table List).
If tax is for Kansas City or St. Louis Local Income Tax, complete the following: 1) enter the desired year for which to add the rate information in the Tax Year field (use the yyyy format, or click the down-arrow button to select the correct year); and 2) enter the rate (percentage) for the tax in the Percent of Gross field.
If applicable, to add the rates in the Tax Table List for a tax or a particular table for a tax, complete the following: 1) enter the limit for each rate in the But Not Over field; 2) the amounts entered in the But Not Over field automatically appear in the Wages Over field for the next rate and cannot be changed; 3) enter the dollar amount to be withheld for the specified rate in the Amount to Withhold field; and 4) enter the percent of the excess to be withheld in addition to the dollar amount for the specified rate in the Plus % of Excess field.
Click the Save button.
If applicable, click the Taxes Payable tab to set up an override payment if the tax will require a check to be written for a different amount than what is withheld and expensed for the tax.