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21st Century Accounting Help - Payroll/Configure

Tax Calculations

Use Payroll/Configure/Tax Calculations to set up user-defined taxes and to modify certain restricted calculation information for some system-defined taxes such as state unemployment taxes.

You use the Tax Calculations function to set up and modify taxes at the system-wide level.  Tax Calculations is active for all companies; you can run the command without selecting a company.

Here is a quick guide to using Tax Calculations:

In Tax Calculations window: Create a user-defined tax or edit a system tax
Then, down arrow
In Taxes window: Finish configuring the tax
Then, down arrow

In Employees window: Assign the tax to employees

Configuring user-defined taxes in Configure/Tax Calculations

Depending on the tax contribution method, you can set up minimums and maximums for taxable earnings, an annual tax deduction ceiling, the tax percent or flat amount, and certain other tax-specific information such as standard deduction or exemption amounts.

Configuring certain system (Tax Table) taxes in Configure/Tax Calculations

You do not have access to contribution methods and some of the other tax calculation information that is provided on the Payroll Tax Updates. To lessen your dependence on Payroll Tax Updates for frequent changes, however, 21st Century Accounting21st Century Payroll allows you to modify certain, restricted tax calculation information such as SUTA maximum taxable earnings (the "wage base").

Completing tax configuration in Configure/Taxes

After saving your user-defined tax or saving changes to a system tax in the Configure/Tax Calculations window, open the Configure/Taxes window to finish setting up the tax. In the Configure/Taxes window, you indicate the earnings to include in calculation of taxes defined as "percent of taxable earnings." In the Configure/Taxes window, you enter the company-wide percentage that has been assigned to the company to use for SUTA taxes.

Assigning user-defined taxes to employees

You must select a company and use the Configure/Taxes window to configure each tax created or modified in the Tax Calculations window before you can assign the tax to employees.

In the Configure/Taxes window you can configure a tax to be automatically assigned to new employees. You can also assign taxes to (and remove them from) selected employees in the Payroll/Configure/Employees window, where you also customize taxes for individual employees, if necessary.

Posting taxes

You must select a company and use the Configure/Taxes window to assign general ledger accounts to each tax created or modified in the Tax Calculations window before the system can post the tax as part of an employee's Payroll setup.

You select the option for departmentalization by G/L account segment in Payroll/Configure/Company Information and then when you configure each tax in the Payroll/Configure/Taxes window.

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