About self-adjusting taxes in Payroll
unavailable in ajeraCore unless you have the Payroll add-on
In Ajera, some taxes self-adjust to ensure that the accumulated tax
withheld is always correct for the year-to-date (YTD).
A self-adjusting tax is any
tax set up with a wage limit amount, such as Federal Unemployment
Tax, Social Security, and State Unemployment.
For example, Social Security tax has a wage limit. Each time Ajera calculates
this tax, it confirms that enough tax is withheld by testing the accumulated
tax withheld for the year-to-date. If needed, it then automatically self-adjusts
the amount of tax withheld. Because Ajera corrects over-withholding or
under-withholding each time it calculates self-adjusting taxes, adjustments
can occur on more than one check.
Example
An employee's starting balances for YTD subject-to taxes are incorrect.
Social Security YTD taxes are under-withheld by $5.00 because of an incorrect
starting balance for the employee. To correct the YTD total, Ajera automatically
withholds $5.00 more than normal on the next check.
|
Concepts
About state withholding for multiple states
About payroll taxes
Tasks
Withholding for local taxes
Estimating payroll taxes and net pay
Setting up fringes
Copying a pay, tax, deduction, or fringe
Changing a fringe
Deleting a pay, tax, deduction, or fringe
Inactivating a pay, tax, deduction, fringe, or wage table
Setting up workers' compensation taxes
Setting up taxes
References
Tax inquiry
|