Use this screen to establish payroll tax and pay cycle information. You must set up this screen to enable the proper calculation of payroll and withholding taxes.
Enter, or use Lookup to select, the employee ID for the employee to be updated. After you enter the employee ID, the employee's name is displayed to the right.
If you specify a Default Pay Cycle in the Payroll Settings screen, that code will default into this field. If you did not specify a Default Pay Cycle, enter the four-character alphanumeric pay cycle code (see the Pay Periods screen) that is assigned to this employee, or use Lookup to select the code.
If this employee is covered under a retirement plan for W-2 reporting purposes, select this checkbox.
Use in this group box to set up the status for an employee regarding social security, Medicare, and FUTA liability.
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.
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.
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.
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.
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.
Enter 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 where the employee works on a permanent basis. You can also use Lookup to select the state abbreviation.
Use the fields in 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.
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 tax tables and local tax tables before making this selection.
Select the filing status that applies to the taxing entity on this row from these display-only drop-down boxes. 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.
For Advance EIC, the available selections are "Full Credit," "Half Credit," 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.
Enter the number of exemptions claimed by the employee on Form W-4 and on State and Local exemption forms in these numeric fields. 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.
Some states give a credit based upon the number of dependents claimed. If this state (or locality) allows this, enter the number of dependents the employee claims in this numeric field. However, if the withholdings state is Puerto Rico (PR), enter the number of dependent exemptions claimed.
Some states allow a credit (reduction in tax) based upon the number of credits claimed. If this state (or locality) allows this, enter the number of credits claimed by the employee in this numeric field.
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.
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.
To add an additional amount to the system-calculated Tax Withholding amount, enter that amount in this numeric field. This amount is added to the system-calculated amount each pay cycle.
Select this pushbutton to open the Tax Reporting Info subtask for the current record. You should enter the information in 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.