Contents of the Manage Pay Type Taxability Screen

Identification

Field	Description
Pay Type Code	Enter, or click to select, the pay type code (previously established in Costpoint Labor) for which you want to set up the taxability. The description of the entered pay type code is displayed when you enter the pay type.

Federal

Use this group box to select income taxability for federal income tax withholding and taxability for the two levels of FICA and FUTA.

Income Tax

Select one of the options, depending on the federal income tax computation for this pay type.

Field	Description
Fully Taxable	Select this option if the pay type has no special effect on the calculation of income tax.
Taxable but Not Subject to W/H	Select this option if this pay type is taxable when added to gross pay, but withholding is not required.
Federal Exempt	Select this option if this pay type must be subtracted from gross pay before taxes are computed.

Social Security

The Social Security group box allows you to select the FICA fields related to social security.

Field	Description
Employee Social Security Exempt	Select this check box if the pay type is exempt from the employee portion of the social security taxes. When you select this check box, the screen automatically selects and disables Employer Social Security Exempt check box because if the pay type is exempt from employee portion of social security tax, then the employer portion will always be exempt. When you clear this check box, the screen automatically enables the Employer Social Security Exempt check box because if pay type is not exempt from employee portion of social security tax, then the employer portion can either be exempt or not.
Employer Social Security Exempt	Select this check box if the pay type is exempt from the employer portion of social security taxes

Field

Description

Employee Social Security Exempt

Select this check box if the pay type is exempt from the employee portion of the social security taxes.

When you select this check box, the screen automatically selects and disables Employer Social Security Exempt check box because if the pay type is exempt from employee portion of social security tax, then the employer portion will always be exempt.

When you clear this check box, the screen automatically enables the Employer Social Security Exempt check box because if pay type is not exempt from employee portion of social security tax, then the employer portion can either be exempt or not.

Employer Social Security Exempt

Select this check box if the pay type is exempt from the employer portion of social security taxes

Medicare

The Medicare group box allows you to select FICA fields related to Medicare.

Field	Description
Employee Medicare Exempt	Select this check box if the pay type is exempt from the employee portion of the Medicare taxes. When you select this check box, the screen automatically selects the Employer Medicare Exempt check box because if pay type is exempt from employee portion of Medicare tax, then the employer portion will always be exempt. When you clear this check box, the screen automatically selects the Employer Medicare Exempt check box because if pay type is not exempt from employee portion of Medicare tax, then the employer portion will always be not exempt.
Employer Medicare Exempt	Select this check box if the pay type is exempt from the employer portion of the Medicare taxes. This field is not editable.
COVID-19 Tax Credit	From the drop-down list, select one of following options to designate the pay type taxability : COVID-19 Paid Sick Leave: Select this option if the pay type is used for wages paid as a result of Emergency Paid Sick Leave Act (EPSLA). COVID-19 FMLA: Select this option if pay type is used for wages paid as a result of Emergency Family and Medical Leave Expansion Act (EFMLEA). This field will be enabled if the Employee Social Security Exempt check box is cleared.

Field

Description

Employee Medicare Exempt

Select this check box if the pay type is exempt from the employee portion of the Medicare taxes.

When you select this check box, the screen automatically selects the Employer Medicare Exempt check box because if pay type is exempt from employee portion of Medicare tax, then the employer portion will always be exempt.

When you clear this check box, the screen automatically selects the Employer Medicare Exempt check box because if pay type is not exempt from employee portion of Medicare tax, then the employer portion will always be not exempt.

Employer Medicare Exempt

Select this check box if the pay type is exempt from the employer portion of the Medicare taxes.

This field is not editable.

COVID-19 Tax Credit

From the drop-down list, select one of following options to designate the pay type taxability :

COVID-19 Paid Sick Leave: Select this option if the pay type is used for wages paid as a result of Emergency Paid Sick Leave Act (EPSLA).
COVID-19 FMLA: Select this option if pay type is used for wages paid as a result of Emergency Family and Medical Leave Expansion Act (EFMLEA).

This field will be enabled if the Employee Social Security Exempt check box is cleared.

Others

Field	Description
FUTA Exempt	Select this check box if this pay type must be subtracted from gross pay before Federal Unemployment taxes are computed.
W-2 Include in Box 11	Select this check box if this pay type must be included in Field 11 of your W-2s.

Subtasks

Subtask	Description
State	Click this link to access the State subtask for the current record.
Local	Click this link to access the Local subtask for the current record.

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