US Payroll - Payroll Tax Accounting

Pgm: PYTAXCOM – Payroll Tax Accounting; standard Treeview path: US Payroll > Administration > Taxes > Accounting

The Payroll Tax Accounting screen is used to assign debit and credit accounts to taxes. Users can also import tax details using the standard import functionality with validation.

Selection Criteria

Company

Enter/select the company code.

[Copy] – Button

Press this button to copy the tax accounting details to another company.

Tax Details

State, Location

To assign federal taxes, enter “ALL” in the State and Location fields. To assign state taxes, enter the appropriate code in the State field and “ALL” in the Location field. To assign local taxes, enter the appropriate codes in the State and Location fields. If the local tax applies to all localities, enter "ALL" in the Location field.

Tax Level

This field is read-only and displays whether the tax is a federal, state, or local tax.

Tax Code

Enter/select the tax code or "ALL" to include all tax codes. The available taxes depend on the level at which they are being assigned. Users can enter "ALL" in the State, Location, and Tax Code fields when the same setup applies across multiple regions or tax types.

When processing payroll, the system will first check for the account associated with the specific tax code. If no account is found, the system will search for the account tied to the "ALL" tax code at the relevant tax level (e.g., federal, state, or local).

Credit Department, Debit Department

Enter/select the departments to which taxes are credited and debited. If blank, these fields default to the employee department.

Credit Account, Debit Account

Enter/select the accounts that the system credits and debits when this tax is processed. Typically these are the liability and expense accounts associated with the tax. Leave the Debit Account field blank if the tax is paid by the employee.

Vendor

Enter/select a vendor/customer for the tax being assigned, if applicable. For example, when multiple vendors are involved for the same tax across different work locations or states, separate accounting lines are required with each vendor assigned to a specific location.

NOTE: A duplicate tax code/state/vendor combination is not allowed.

Comment

Enter any comments for the tax being assigned, if applicable.