The Taxes option, which is in Payroll but can also be accessed from Negotiations (if applicable), is used to define the tax rates and tables for each tax used when calculating a payroll.  The taxes included in the Tax File are income tax (Federal, State, and Local), unemployment tax (Federal and State), social security, medicare, and workers compensation.  Taxes are tied to a year which allows for the history of each tax to be tracked and the next year’s tax rates to be entered without affecting the current rate.

The School Accounting System uses the annual tax table amounts defined by the federal, state, and local governments to calculate and withhold the required federal, state, and local income tax based on the employee’s marital status and number of exemptions.  The remaining taxes are calculated in the School Accounting System based on the tax rates defined by the federal or state government.  The tax rates and tables are subject to change annually.

Note:  Keeping the tax rates and tables current is very critical.  Changes to tax rates and tables for all the federal taxes, state and local income taxes, and the limits for state unemployment taxes (except in North Dakota and Kansas) are included in the updates received from Software Unlimited, Inc.; however, you are responsible for making sure the changes to the rates and rate tables are completed, or the appropriate update installed, prior to running a payroll for a new year.

Steps to Add a Tax

Steps to Change a Tax

Steps to Delete a Tax