PAY TYPE TAXABILITY  

Use this screen to establish the Federal, State, and Local Tax handling rules for established pay types.

You must set up this screen before you compute your first payroll. The system will assume full taxability at the federal, state, and local level unless you specify differently here.

Pay Type

Enter the three-character pay type code (previously established in Costpoint Labor) for which you want to set up the taxability. You can use Lookup to select this code. The description of the entered pay type code is displayed when you enter the pay type.

Federal

Use items in 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 radio buttons, depending on the federal income tax computation for this pay type.

Fully Taxable

Select this radio button if the pay type should have no special effect on the calculation of income tax.

Taxable, Not Subject to W/H

Select this radio button if this pay type is taxable when added to gross pay, but withholding is not required.

Federal Exempt

Select this radio button if this pay type should be subtracted from gross pay before taxes are computed.

FICA

Use the selections in this group box to set up taxability at the Social Security and Medicare levels.

Social Security Exempt

Select this checkbox if this pay type should be subtracted from gross pay before social security taxes are computed.

Medicare Exempt

Select this checkbox if this pay type should be subtracted from gross pay before Medicare taxes are computed.

FUTA Exempt

Select this checkbox if this pay type should be subtracted from gross pay before Federal Unemployment taxes are computed.

W2 Include in Box 11

Select this checkbox if this pay type should be included in Field 11 of your W-2s.

State

Select this pushbutton to access the State subtask for the current record.

Local

Select this pushbutton to access the Local subtask for the current record.

Table Information

Changes to this screen update the following tables:

Pay Type Taxable - PR_PAY_TYPE_TXBL       

Pay Type State Taxable  - PR_PAY_TYPE_ST_TXBL   

Pay Type Local Taxable - PR_PAY_TYPE_LOC_TXBLPAY TYPE TAXABILITY