Changing a tax

The name of the tax - This is the name that 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, clear this check box.

The type of tax - After the tax is used, you cannot change the type.

Multi-company only. If you select either State Disability or State Unemployment, the Company field appears. You can set up different disability or unemployment tax 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 Setup > Employees > Payroll Taxes tab. You can also manually add the tax to a 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 rSetup > 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 or state unemployment 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.

The account number with this tax entity

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. To not report amounts for this tax, select the Not Reported option.

For box 14, 18, or 19, you must identify the tax by printing a description for it in the box. You enter this description in Ajera 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, you 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 Worker’s Compensation - The ID provided by the worker’s compensation provider

This code allows for different tasks which have different worker’s compensation codes. For example, the survey activity has a different code from the drafting activity. 

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% 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 you 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.