Implement the Percent of Wages Method for Withholdings

You implement the Percent of Wages method in the Employee hub.

Prerequisite: Before you specify employee withholdings, you must establish enterprise-wide withholding codes in Payroll Withholding Setup.

To use the percent of wages tax locale method to determine withholdings:

1. In the Navigation pane, select Hubs > Employee > Employees.
2. At the top of the Employees form, enter either a complete or partial name or number in the Find employee lookup field to find and select the employee.
3. On the Payroll tab, in the Withholdings grid, click + Add Withholding and enter information in the Withholdings grid.
   Consult the Tax Facts sheets for information about applicable withholding fields and settings. The information required in the Withholdings grid depends on the type of withholding.

   If your enterprise uses the Follow Project Locale method to determine an employee's withholdings, Vantagepoint ignores entries in the Withholdings grid and instead uses the payroll tax locale specified in the posted timesheet to determine withholding information.

4. Set the Locale Method option to Percent of Wages.
5. In the State/Local Tax Jurisdictions grid, select the Active option for each withholding that you want to use for future payroll runs.
6. For each withholding in the grid, enter the percent of total taxable wages for which you want the withholding to apply.
   The total of all withholdings must be 100%.