MAINTAIN EMPLOYEE MASTER - EMPLOYEE TAXES  

Use this subtask to establish information on payroll tax and the pay cycle. You must enter information in this subtask for proper calculation of payroll and withholding taxes.

Employee

The employee ID and name will default from the main screen.

Pay Cycle

If you specified a Default Pay Cycle in the Payroll Settings screen in Costpoint Payroll, that code will default into this field. If you did not specify a Default Pay Cycle, enter, or use Lookup to select, up to four-alphanumeric characters for the pay cycle code (see the Pay Periods screen in Costpoint Payroll) assigned to this employee.

Retirement Plan Covered

Select this checkbox if the employee is covered under a retirement plan for W-2 reporting purposes.

Subject to

Use the options in this group box to set up an employee's status for Social Security, Medicare, and FUTA liability.

Social Security

Select this checkbox if the employee is subject to social security payroll tax. The system default is checked. Deselect this checkbox ONLY if social security payroll tax should not be withheld and accrued for the employee. Wages exempt from social security are tracked in the Employee Payroll table (Payroll Edit table) and stored in the Maintain Employee Earnings table in Costpoint Payroll. When employees are designated as Social Security Exempt, their total wage amount automatically displays in the Gross to Taxable Pay Reconciliation group box in the Maintain Payroll Edit Table screen when you execute the Compute Payroll screen in Costpoint Payroll. The system subtracts non-social security earnings amounts from total wages when computing social security-eligible wages for computation of social security amounts and presentation of social security-eligible wages on payroll reports.

Medicare

Select this checkbox if the employee is subject to Medicare payroll tax. The system default is checked. Deselect this checkbox ONLY if Medicare payroll tax should not be withheld and accrued for the employee. Wages exempt from Medicare are tracked in the Employee Payroll table (Payroll Edit table) and stored in the Maintain Employee Earnings table in Costpoint Payroll. When employees are designated as Medicare Exempt, their total wage amount automatically displays in the Gross to Taxable Pay Reconciliation group box in the Maintain Payroll Edit Table when you execute the Compute Payroll screen in Costpoint Payroll. The system subtracts non-Medicare earnings amounts from total wages when computing Medicare-eligible wages for computation of Medicare amounts and presentation of Medicare-eligible wages on payroll reports.

FUTA

Select this checkbox if the employee is subject to Federal Unemployment Tax (FUTA) payroll tax. The default is checked. If an employee is exempt from both social security and Medicare tax, the employee is also exempt from FUTA tax. Deselect this checkbox only if FUTA payroll tax should not be accrued for the employee. Wages exempt from FUTA are tracked in the Maintain Payroll Edit Table screen and stored in the Maintain Employee Earnings screen in Costpoint Payroll. When employees are designated as FUTA Exempt, their total wage amount automatically displays in the FUTA group box in the Maintain Payroll Edit Table when you execute the Compute Payroll screen in Costpoint Payroll. The system subtracts non-FUTA accruals from total wages when computing FUTA-eligible wages for computation of FUTA amounts and presentation of FUTA-eligible wages on payroll reports.

Nonresident Alien

Select this checkbox to indicate that this employee is a nonresident alien. The Compute Payroll process uses this flag to determine whether the Nonresident Alien Additional Amount from the Federal Taxes screen in Costpoint Payroll should be added to the nonresident alien's wages to calculate the federal income tax withholding for each payroll period. (The amount is added only for this calculation.) If you select this checkbox, the Disable ESS W-4 checkbox defaults to selected. Also, the number of federal exemptions defaults to "1," and the Federal Filing Status defaults to "Single."  You can edit all of these default values.

Disable ESS W-4

Select this checkbox to prevent this employee from editing his W-4 information in Deltek Employee Self Service. This checkbox displays only if you are licensed for ESS version 7.5 or higher.

SUTA State

Enter, or use Lookup to select, the two-character state abbreviation for the state in which this employee is covered for state unemployment purposes. This is normally the home state or the state in which the employee works permanently.

Withholding and Credits

Use this group box to ensure proper withholding of payroll taxes for employees, as indicated by their W-4 forms, state withholding forms, and, if applicable, local withholding forms and W-5 forms for Advance EIC.

State/Locality

Enter the two-character state code or six-character locality code in the fields that apply to each row of data. You can enter up to five localities. You can use Lookup to select these codes. You must install your state and local tax tables before making this selection.

Filing Status (Federal/Advance EIC/State/Locality)

Federal

Use the drop-down box to select the filing status that applies to the taxing entity on this row. Refer to the Tax Tables documentation for the state filing status descriptions for those other than "Married" and "Single." You cannot select a status that is not included in the tax tables for the individual states or localities.

Advance EIC

The available selections are "Single or Head of Household," "Married Without Spouse," "Married With Both Spouses", or "None." Employees with an Advance EIC filing status other than "None" must have a current W-5 form on file. Refer to the Tax Tables documentation for information on the Advance EIC computation.

No of Exempt (Federal/State/Locality)

In these numeric fields, enter the number of exemptions claimed by the employee on Form W-4 and on State and Local exemption forms. These exemptions are used in the computation of Federal, State, and Local withholding taxes.

Note that some states and localities make a distinction between regular exemptions and additional withholding deductions. Check the Tax Tables documentation for information on which states require the additional withholding deductions.

No of Dep (State/Locality)

Some states give a credit based upon the number of dependents claimed. If the state (or locality) allows this, enter the number of dependents the employee claims in this numeric data field.

However, if the withholdings state is Puerto Rico (PR), enter the number of dependent exemptions claimed.

No of Credits (State/Locality)

Some states allow a credit (reduction in tax) based upon the number of credits claimed. If the state (or locality) allows this, enter the number of credits claimed by the employee in this numeric field.

Override Amount (Federal/Advance EIC/State/Locality)

If you want to override the system-calculated amount and use a different amount instead for the related tax (or EIC amount), enter the desired amount in this numeric field. This amount will be used each pay cycle.

Override Percent (Federal/State)

If you want to override the system-calculated amount and use a percentage instead for the related tax, enter the desired percentage in this numeric field. This amount will be used each pay cycle.

Note:  This method is not supported by IRS W-4 and Deltek assumes no liability if it is used.

Note:  When entering a new record, the Federal Filing Status will default to "Single" and the Federal No of Exempt will default to 0 (zero).

Additional Amount (Federal/State/Locality)

If you want to add to the system-calculated tax-withholding amount, enter that additional amount in this numeric field. This amount will be added to the system-calculated amount each pay cycle.

Tax Reporting Info

Select this pushbutton to open the Tax Reporting Info subtask for the current record.  You should enter information into this subtask if you are using the Create State Qtrly Unempl Mag Media or CTS Tax Interface to report quarterly information for the states of California, Wyoming, Minnesota, and/or Alaska.

Table Information

Changes to this screen update the EMPL_TAX table.