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Using the Help Search

Contents of the Manage Federal Taxes Screen

Use the fields and options to configure the Manage Federal Taxes screen.

Table Window

Field	Description
Payroll Year	Enter a year. The Payroll Year is the calendar year to which the information applies.
Social Security Wage Limit	Enter the total amount of wages subject to the social security tax. The wages must be applicable to the year you are adding (for example, 87,000 for 2003).
Social Security Employer Rate	Enter the percent (of applicable wages) that the employer must pay as its part of the social security tax. The percentage must be applicable to the year you are adding (for example, 6.2 for 2003).
Social Security Employee Rate	Enter the percent (of applicable wages) that the employee must pay as part of the social security tax. The percentage must be applicable to the year you are adding (for example, 6.2 for 2003).
Medicare Wage Limit	Enter the total amount of wages subject to the Medicare tax. At present, all wages are subject to Medicare tax. Entering all nines enables correct calculations.
Medicare Employer Rate	Enter the percent (of taxable wages) that the employer must pay as its part of the Medicare Tax. The percentage must be applicable to the year you are adding (for example, 1.45 for 2003).
Medicare Employee Rate	Enter the percent (of taxable wages) that the employee must pay as part of the Medicare Tax. The percentage must be applicable to the year you are adding (for example, 1.45 for 2003).
Medicare Additional Tax Threshold	Enter the threshold amount that was defined by the U.S. government at which additional Medicare tax shall be withheld from the employee.
Medicare Additional Tax Rate	Enter the additional Medicare rate to be applied when wages exceed the U.S. government -defined threshold.
FUTA Wage Limit	Enter the total amount of wages subject to the Federal Unemployment Tax (FUTA). The wages should be applicable to the year you are adding (for example, 7,000 for 2003).
FUTA Employer Rate	Enter the percent (of applicable wages) that must be paid for the Federal Unemployment Tax (FUTA). The percentage must be applicable to the year you are adding (for example, .8 for 2003).
Federal Exemption Amount	Enter the exemption amount that applies to Federal Income Tax Withholding. The exemption amount must be applicable to the year you are adding (for example, 3,050 for 2003).
Nonresident Alien Additional Amount	Enter the additional amount provided in Publication 15, Circular E. Costpoint adds this amount to the nonresident alien's wages when it calculates the income tax withholding for each payroll period. The amount is added only for this calculation. Costpoint determines the amount to be withheld by applying the appropriate values from the income tax withholding tables to the amount of wages paid plus the additional chart amount entered here. This amount is not included in any box on the employee's Form W-2. It does not increase the income tax liability of the employee, nor does it increase the Social Security, Medicare, or FUTA tax liability of the employer or the employee. Note: For wages paid on or after January 1, 2006, employers are required to apply a new procedure in calculating the amount of federal income tax withholding on the wages of nonresident alien employees. For more information, see Notice 2005-76 on page 947 of Internal Revenue Bulletin 2005-46. This procedure applies only to nonresident alien employees who have wages subject to income tax withholding. It does not apply to nonresident alien students from India and business apprentices from India.
Supplemental Tax Rate ($1,000,000 and under)	Enter the tax rate to be used for Federal Income Tax Withholding related to Supplemental (Bonus) wages under $1,000,000 year-to-date. This percentage must be applicable to the year you are adding (for example, 35 for 2005).
Supplemental Tax Rate (Over $1,000,000)	Enter the tax rate to be used for Federal Income Tax Withholding related to Supplemental (Bonus) wages over $1,000,000 year-to-date. This percentage must be applicable to the year you are adding (for example, 35 for 2005).
401(k) Wage Limit	Enter the maximum amount that can be used as base wages for members of the "high" compensation group for purposes of 401(k) Actual Deferral Percentage (ADP) testing. This wage limit must be applicable to the year you are adding (for example, 200,000 for 2003).
401(k) Deferral Limit	Enter the amount that can be deferred from wages as a result of employee's voluntary reduction (deferral) of wages related to Section 401(k) Qualified Deferred Compensation Plans. This deferral limit must be applicable to the year you are adding (for example, 12,000 for 2003).
Roth Catch-Up Wage Threshold	Enter the prior year wage threshold amount that was defined by the U.S. government at which retirement contribution catch-ups will be required to be in a post-tax Roth IRA. This amount will be used by the Print Employees Eligible for Retirement Catch-Up screen to determine which employees must make retirement catch-up contributions to a post-tax Roth IRA.
Federal Poverty Level	Enter the one-person poverty level threshold amount for the 48 contiguous states and the District of Columbia. This amount will be used to determine if the lowest cost employee-only coverage is affordable.
ACA Safe Harbor Affordability Rate	Enter the percentage of an employee’s household income that will be used to determine whether the minimum-value coverage offered to the employee is affordable.
Step 2 of W-4	Enter the multiplier number that will be used in the calculation of federal income tax withholding amount if the employee selects the check box in Step 2 of Form W-4.
Married Multiplier	Enter the multiplier number if Married filing status table will be used in the calculation of federal income tax withholding amount.
Single Multiplier	Enter the multiplier number if the Single filing status table will be used in the calculation of federal income tax withholding amount.
Head of Household Multiplier	Enter the multiplier number if the Head of Household filing status table will be used in the calculation of federal income tax withholding amount.
Dependent Credit Qualifying Children Amount	Enter the amount of tax credit per dependent for qualifying children under 17. This value is from Step 3 of Form W-4.
Other Dependents Amount	Enter the amount of tax credit per dependent for other dependents claim. This value is from Step 3 of Form W-4.
Married Deduction Amount	Enter the deduction amount for married filing jointly or qualifying widow(er). This value is from Worksheet 2 of 2020 W-4.
Single Deduction Amount	Enter the deduction amount for single or married filing separately. This value is from Worksheet 2 of 2020 W-4.
Head of Household Deduction Amount	Enter the deduction amount for head of household. This value is from Worksheet 2 of 2020 W-4.

Subtasks

Subtask	Description
FUTA Credit Reduction States	Click this link to open the FUTA Credit Reduction States subtask. Use this subtask to track FUTA credit reduction amounts for your states. You can indicate which state and payroll year combinations are subject to the FUTA credit reduction and specify the FUTA credit reduction percentage.

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Contents of the Manage Federal Taxes Screen

Use the fields and options to configure the Manage Federal Taxes screen.

Table Window

Field	Description
Payroll Year	Enter a year. The Payroll Year is the calendar year to which the information applies.
Social Security Wage Limit	Enter the total amount of wages subject to the social security tax. The wages must be applicable to the year you are adding (for example, 87,000 for 2003).
Social Security Employer Rate	Enter the percent (of applicable wages) that the employer must pay as its part of the social security tax. The percentage must be applicable to the year you are adding (for example, 6.2 for 2003).
Social Security Employee Rate	Enter the percent (of applicable wages) that the employee must pay as part of the social security tax. The percentage must be applicable to the year you are adding (for example, 6.2 for 2003).
Medicare Wage Limit	Enter the total amount of wages subject to the Medicare tax. At present, all wages are subject to Medicare tax. Entering all nines enables correct calculations.
Medicare Employer Rate	Enter the percent (of taxable wages) that the employer must pay as its part of the Medicare Tax. The percentage must be applicable to the year you are adding (for example, 1.45 for 2003).
Medicare Employee Rate	Enter the percent (of taxable wages) that the employee must pay as part of the Medicare Tax. The percentage must be applicable to the year you are adding (for example, 1.45 for 2003).
Medicare Additional Tax Threshold	Enter the threshold amount that was defined by the U.S. government at which additional Medicare tax shall be withheld from the employee.
Medicare Additional Tax Rate	Enter the additional Medicare rate to be applied when wages exceed the U.S. government -defined threshold.
FUTA Wage Limit	Enter the total amount of wages subject to the Federal Unemployment Tax (FUTA). The wages should be applicable to the year you are adding (for example, 7,000 for 2003).
FUTA Employer Rate	Enter the percent (of applicable wages) that must be paid for the Federal Unemployment Tax (FUTA). The percentage must be applicable to the year you are adding (for example, .8 for 2003).
Federal Exemption Amount	Enter the exemption amount that applies to Federal Income Tax Withholding. The exemption amount must be applicable to the year you are adding (for example, 3,050 for 2003).
Nonresident Alien Additional Amount	Enter the additional amount provided in Publication 15, Circular E. Costpoint adds this amount to the nonresident alien's wages when it calculates the income tax withholding for each payroll period. The amount is added only for this calculation. Costpoint determines the amount to be withheld by applying the appropriate values from the income tax withholding tables to the amount of wages paid plus the additional chart amount entered here. This amount is not included in any box on the employee's Form W-2. It does not increase the income tax liability of the employee, nor does it increase the Social Security, Medicare, or FUTA tax liability of the employer or the employee. Note: For wages paid on or after January 1, 2006, employers are required to apply a new procedure in calculating the amount of federal income tax withholding on the wages of nonresident alien employees. For more information, see Notice 2005-76 on page 947 of Internal Revenue Bulletin 2005-46. This procedure applies only to nonresident alien employees who have wages subject to income tax withholding. It does not apply to nonresident alien students from India and business apprentices from India.
Supplemental Tax Rate ($1,000,000 and under)	Enter the tax rate to be used for Federal Income Tax Withholding related to Supplemental (Bonus) wages under $1,000,000 year-to-date. This percentage must be applicable to the year you are adding (for example, 35 for 2005).
Supplemental Tax Rate (Over $1,000,000)	Enter the tax rate to be used for Federal Income Tax Withholding related to Supplemental (Bonus) wages over $1,000,000 year-to-date. This percentage must be applicable to the year you are adding (for example, 35 for 2005).
401(k) Wage Limit	Enter the maximum amount that can be used as base wages for members of the "high" compensation group for purposes of 401(k) Actual Deferral Percentage (ADP) testing. This wage limit must be applicable to the year you are adding (for example, 200,000 for 2003).
401(k) Deferral Limit	Enter the amount that can be deferred from wages as a result of employee's voluntary reduction (deferral) of wages related to Section 401(k) Qualified Deferred Compensation Plans. This deferral limit must be applicable to the year you are adding (for example, 12,000 for 2003).
Roth Catch-Up Wage Threshold	Enter the prior year wage threshold amount that was defined by the U.S. government at which retirement contribution catch-ups will be required to be in a post-tax Roth IRA. This amount will be used by the Print Employees Eligible for Retirement Catch-Up screen to determine which employees must make retirement catch-up contributions to a post-tax Roth IRA.
Federal Poverty Level	Enter the one-person poverty level threshold amount for the 48 contiguous states and the District of Columbia. This amount will be used to determine if the lowest cost employee-only coverage is affordable.
ACA Safe Harbor Affordability Rate	Enter the percentage of an employee’s household income that will be used to determine whether the minimum-value coverage offered to the employee is affordable.
Step 2 of W-4	Enter the multiplier number that will be used in the calculation of federal income tax withholding amount if the employee selects the check box in Step 2 of Form W-4.
Married Multiplier	Enter the multiplier number if Married filing status table will be used in the calculation of federal income tax withholding amount.
Single Multiplier	Enter the multiplier number if the Single filing status table will be used in the calculation of federal income tax withholding amount.
Head of Household Multiplier	Enter the multiplier number if the Head of Household filing status table will be used in the calculation of federal income tax withholding amount.
Dependent Credit Qualifying Children Amount	Enter the amount of tax credit per dependent for qualifying children under 17. This value is from Step 3 of Form W-4.
Other Dependents Amount	Enter the amount of tax credit per dependent for other dependents claim. This value is from Step 3 of Form W-4.
Married Deduction Amount	Enter the deduction amount for married filing jointly or qualifying widow(er). This value is from Worksheet 2 of 2020 W-4.
Single Deduction Amount	Enter the deduction amount for single or married filing separately. This value is from Worksheet 2 of 2020 W-4.
Head of Household Deduction Amount	Enter the deduction amount for head of household. This value is from Worksheet 2 of 2020 W-4.

Subtasks

Subtask	Description
FUTA Credit Reduction States	Click this link to open the FUTA Credit Reduction States subtask. Use this subtask to track FUTA credit reduction amounts for your states. You can indicate which state and payroll year combinations are subject to the FUTA credit reduction and specify the FUTA credit reduction percentage.