Setting up taxes

Type the name of the tax. This name appears on lists in Ajera and on paycheck stubs and reports.

Select this check box if the employer is paying this tax. To withhold the tax from the employee, leave this check box cleared.

Select the type of tax you are setting up.

To calculate employer-paid state disability or unemployment, select the Employer tax check box when setting up the tax.

To calculate both employer and employee-paid state disability or unemployment, set up a separate tax for each.

Multi-company only. If you select either State Disability or State Unemployment, the Company field appears. You can set up different disability or unemployment rates for each company, if needed.

This field applies only if:

• You are setting up a local tax (you selected Local in the Type field and Percent of Taxable in the Calculation Method field on this window).
• You are using multiple state withholding (you selected the Company > Preferences > Payroll tab > Allow states taxes from multiple states on one paycheck check box).

Select one of the following options to determine the percent of taxable on which to base the local tax withholding:

Local

Select this option to base the tax on the taxable wages less exempt pays and deductions.

Next, you add this tax for each affected employee through the Setup > Employees > Payroll Taxes tab. You can also manually add the tax to the paycheck as follows: Click Manage > Payroll, click Edit for the payroll, click Edit for the employee, and click the Pay tab. Open the pay and select the tax in the Local field.

Federal

Select this option to base the tax on the federal withholding taxable amount.

Social Security

Select this option to base the tax on the Social Security taxable amount.

State

Select this option to base the tax on the state withholding taxable amount for the state where the local tax applies.

Location-based

Select this option if you are setting up a tax that is based on where the work is performed.

Next, you add this tax for the applicable projects or phases through Setup > Projects > Project Info tab > General subtab). You can also manually add the tax to the paycheck as follows: Click Manage > Payroll, click Edit for the payroll, click Edit for the employee, and click the Pay tab. Open the pay and select the tax in the Local field.

Multi-company only. To associate this state disability insurance (SDI) or state unemployment insurance (SUI) tax to a specific company in your organization, select the company. Ajera uses this tax rate when you run payroll for this company.

If you selected a state tax for the tax type, select the state where the tax applies.

Enter your account number with this tax entity.

Select the liability account to use for this tax.

If you selected the Employer tax check box, select the expense account to use for this tax.

To report the amounts for this tax in boxes 10 through 20 on Form W-2, select the box on Form W-2 where you want to report the tax.

Otherwise, leave the Not Reported option selected.

For box 14, 18, or 19, identify the tax by printing a description for it in the box. Enter this description in the W-2 Box Description field.

For more information, see About Form W-2.

If you selected to report this tax in box 14, 18, or 19, identify it by printing a description for it in the box. Type the description you want to print, entering up to five characters.

Available only for taxes with a type of Workers' Compensation.

Type the ID provided by the workers' compensation provider.

This code allows for different tasks that have different workers' compensation codes. For example, the survey activity has a different code from the drafting activity. 

Select the calculation method for the way you want to calculate the tax.

If applicable, depending on the calculation method you selected, type the amount or percent that you want to use. Enter a percent as a whole number; for example, enter 2% percent as 2.00 and not .02.

If applicable, type the maximum amount of income that is subject to this tax. For example, SDI, FICA, and FUTA taxes are subject to a limit. Ajera calculates the wage limit for the calendar year.

Use these fields if you want a rate or wage limit for the tax to become effective some time in the future.

For example, you want to get started on your January payroll but have not yet processed your last December payroll:

1. Enter the current rate and current wage limit in the Rate and Wage Limit fields (above these fields).
2. Enter an effective date of January 1 and the new rate and wage limit in these fields.

Ajera uses the current rate and wage limit for your December payroll, and the new rate and wage limit for your January payroll.