Steps to Add an EmployeeFrom within the Employee File, click the Taxes tab.
To add a tax to the employee, complete the following:
Click the New Record button.
Enter the ID for the tax to add in the Tax 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.
Note: Only the active taxes appear by default when searching, but the filters can be changed if needed.
Select the Active field to stipulate the tax is currently active and used by the employee. A checkmark will appear in the box if the field is selected. When adding a new tax for an employee, the Active field is selected by default.
If adding Federal Income Tax, complete the Federal W4 Information section.
If the employee completed a federal W4 in 2019 or prior, select the Use Old W4 Format (2019 & Prior) field; otherwise, leave the field unselected if the employee completed a federal W4 in 2020 or beyond. A checkmark will appear in the box if the field is selected.
In the Tax Table field, enter the appropriate letter for which table to use to withhold taxes for the employee, as stipulated on the employee's completed federal W4 Form, or click the down-arrow button to select the correct one.
Note: The Tax Table field is disabled if the Use Old W4 Format (2019 & Prior) field is not selected and the Exempt field is selected.
Select the Exempt field to override the tax table (not calculate and withhold the amount specified from the designated tax table). A checkmark will appear in the box if the field is selected. Typically, this field is selected for employees who want to override the tax table and instead have a specific amount or percent withheld (stipulated in the Additional Taxes section).
The Allowances field is enabled if the Use Old W4 Format (2019 & Prior) field is selected and the Exempt field is not selected. If applicable, enter the number of allowances the employee is claiming as stipulated on the employee's completed federal W4 Form in the Allowances field. The number can be up to 2 digits long.
Select the Nonresident Alien field if the employee is a nonresident alien. A checkmark will appear in this box if the field is selected.
The Multiple Jobs (Step 2) field is only enabled if both the Use Old W4 Format (2019 & Prior) field and the Exempt field are not selected. If applicable, select the Multiple Jobs (Step 2) field if the checkbox in Step 2 on the employee's completed federal W4 Form is checked. A checkmark will appear in this box if the field is selected.
The Claim Dependents (Step 3) field is only enabled if both the Use Old W4 Format (2019 & Prior) field and the Exempt field are not selected. If applicable, enter the amount designated in Box 3 in Step 3 on the employee's completed federal W4 Form in the Claim Dependents (Step 3) field. The amount can be up to 14 digits long (including the decimal point) and will be rounded to 2 decimal places by the system if capable.
The Other Income (Step 4) field is only enabled if both the Use Old W4 Format (2019 & Prior) field and the Exempt field are not selected. If applicable, enter the amount designated in Box 4(a) in Step 4 on the employee's completed federal W4 Form in the Other Income (Step 4) field. The amount can be up to 14 digits long (including the decimal point) and will be rounded to 2 decimal places by the system if capable.
The Deductions (Step 4) field is only enabled if both the Use Old W4 Format (2019 & Prior) field and the Exempt field are not selected. If applicable, enter the amount designated in Box 4(b) in Step 4 on the employee's completed federal W4 Form in the Deductions (Step 4) field. The amount can be up to 14 digits long (including the decimal point) and will be rounded to 2 decimal places by the system if capable.
If adding a State Income Tax, complete the State W4 Information section.
The Use Old W4 Format field is only enabled for Iowa, Montana, and North Dakota State Income Tax. For Iowa and Montana State Income Tax, if the employee completed a state W4 prior to 2024, select the Use Old W4 Format field; otherwise, leave the field unselected if the employee completed a state W4 in 2024 or beyond. For North Dakota State Income Tax, if the employee completed a federal W4 in 2019 or prior, select the Use Old W4 Format field; otherwise, leave the field unselected if the employee completed a federal W4 in 2020 or beyond. A checkmark will appear in the box if the field is selected.
Note: If the Use Old W4 Format field is selected for Iowa State Income Tax, any additional taxes (as entered on the Additional Taxes tab) will not be included in the calculation of the state income tax, as stipulated by the state.
The Tax Table field is enabled for Alabama, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana (only if the Use Old W4 Format field is not selected), Nebraska, New York, North Dakota, and Wisconsin State Income Tax. If applicable, in the Tax Table field, enter the appropriate letter for which table to use to withhold taxes for the employee, as stipulated on the employee's completed state W4 Form (or the employee's federal W4 form for North Dakota (as there is not a state W4 form in North Dakota) and Colorado (if the state withholding certificate was not completed)), or click the down-arrow button to select the correct one.
Note: The Tax Table field is disabled for Illinois, Michigan, Ohio, and Virginia State Income Tax. The field is also disabled for Montana State Income Tax if the Use Old W4 Format field is selected, and for North Dakota State Income Tax if the Use Old W4 Format field is not selected and the Exempt field is selected.
Select the Exempt field to override the tax table (not calculate and withhold the amount specified from the designated tax table). A checkmark will appear in the box if the field is selected. Typically, this field is selected for employees who want to override the tax table and instead have a specific amount or percent withheld (stipulated in the Additional Taxes section).
Note: The Exempt field is disabled for Ohio State Income Tax. If the Exempt field is selected for Montana State Income Tax, any additional taxes (as entered on the Additional Taxes tab) will not be included in the calculation of the state income tax, as stipulated by the state.
For Alabama, Colorado, Idaho, Illinois, Kansas, Michigan, Minnesota, Nebraska, New York, Ohio, Virginia, and Wisconsin State Income Tax, the Allowances field is enabled if the Exempt field is not selected; for Iowa and North Dakota State Income Tax, the Allowances field is only enabled if the Use Old W4 Format field is selected and the Exempt field is not selected; and for Montana State Income Tax, the Allowances field is only enabled if the Use Old W4 Format field is selected. If applicable, in the Allowances field, enter the number of allowances the employee is claiming, as stipulated on the employee's completed state W4 form (or the employee's federal W4 form for North Dakota (as there is not a state W4 form in North Dakota) and Colorado (if the state withholding certificate was not completed)). The number can be up to 2 digits long.
Note: The Allowances field is disabled for Missouri State Income Tax. For Colorado State Income Tax, the maximum number of allowances is 6, if applicable, and so if a number greater than 6 is entered into this field, the system will use 6. For Virginia State Income Tax, enter the number of personal exemptions from Line 1a on the employee's completed state W4 form in this field.
The Total Allowances field is only enabled for Iowa State Income Tax if the Use Old W4 Format field is not selected and the Exempt field is not selected. For Iowa State Income Tax, if applicable, enter the total amount the employee has designated as the Total Allowances in Line 6 on the state W4 form in the Total Allowances field.
The Additional Allowances field is only enabled for Illinois and Virginia State Income Tax. For Illinois State Income Tax, enter the number of allowances the employee is claiming for additional allowances as stipulated in Line 2 on the employee's completed state W4 form in the Additional Allowances field. For Virginia State Income Tax, enter the number of exemptions for age and blindness from Line 1b on the employee's completed state W4 form in the Additional Allowances field. The number can be up to 2 digits long.
The Percent Local Income Tax field is no longer used and is disabled.
The Override Documentation field is only enabled for Nebraska State Income Tax. For Nebraska State Income Tax, if applicable, select the Override Documentation field to override the Special Withholding Procedures (LB223) for calculating Nebraska State Income Tax because of one of the following reasons: 1) the employee has provided the school district with the appropriate documentation to justify a lower withholding percentage, or 2) the school district has less than 25 employees. A checkmark will appear in this box if the field is selected.
Note: If this field is unselected, 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).
The Annual Withholding Allowance field is only enabled for Colorado State Income Tax. For Colorado State Income Tax, if the employee completed the state withholding certificate, enter the amount from Line 2 in the Annual Withholding Allowance field. The amount can be up to 14 digits long (including the decimal point) and will be rounded to 2 decimal places by the system if capable.
If adding Federal or State Income Tax, the Additional Taxes section is enabled. If the employee wants to have an additional fixed dollar amount or percent of gross wages withheld for the Federal or State Income Tax, complete the following:
Enter the appropriate type (Fixed or Percent) to withhold for the additional taxes in the Rate Type field, or click the down-arrow button to select the correct one. To withhold an additional designated dollar amount, enter Fixed. To withhold an additional percent of gross wages, enter Percent.
Select the Regular Pay Period Only field to withhold the additional taxes only during a regular payroll. A checkmark will appear in the box if the field is selected. Typically, this field will be selected.
Note: A regular payroll for an employee is the first check (check sequence) for the employee matching the employee’s default checking account during a payroll calculation of all types including that employee’s pay group except an Extra payroll calculation type.
Enter the amount (fixed dollar amount or percentage) in the appropriate pay period field in the Additional Tax Amounts List. If the additional taxes should be withheld each pay period, enter the amount in the Every Pay Period field. If there are multiple payrolls in one month and the additional taxes should only be withheld on a specific week, enter the amount in the appropriate Week number field. For example, if the additional taxes should only be withheld the second week of the month, enter the amount in the Week 2 field. The amount can be up to 14 digits long (including the decimal point) and will be rounded to 2 decimal places by the system if capable.
Note: If the Use Old W4 Format field is selected for Iowa State Income Tax, any additional taxes will not be included in the calculation of the state income tax, as stipulated by the state. If the Exempt field is selected for Montana State Income Tax, any additional taxes will not be included in the calculation of the state income tax, as stipulated by the state.
If desired, click the Expensed Payroll tab to view the expensed payroll information for this tax for the employee. The fields in the Expensed Payroll List are disabled, as the fields are updated automatically to track the taxes that are expensed at the end of the fiscal year; if needed, contact Customer Support for assistance to enter or edit the information in the fields.
In the Cross References List, select the pay codes and deductions that will be included in the taxable gross for the tax for this employee. 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. The defaults from the Tax File that are applicable to this employee will be selected, but can be changed. To select a pay code or deduction, click once on the box to the left of the ID. 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. A checkmark will appear in the box if the pay code or deduction is selected.
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.
Repeat Steps 2-3 until all the applicable taxes have been added for the employee.
Continue adding the remaining information for the employee if needed.