US Payroll - Payroll Tax Elements

Pgm: PYTAXELM – Payroll Tax Elements; standard Treeview path: US Payroll > Administration > Taxes > Elements

The Payroll Tax Elements screen is used to define those elements (i.e. benefits, deductions, and expenses) that should be included in the total gross wages from which taxes are calculated during payroll processing.

Selection Criteria

Country

This field is read-only.

State

Enter/select the state code or “ALL” for federal taxes.

Tax

Enter/select the tax code.

Tax Element Details

Start Date, End Date

Enter/select the range of the tax element. To leave the element turned on leave the End Date field blank.

Type

Select whether the tax element is a benefit, deduction, or expense.

Code

Enter/select the tax element code.

Regular Pay – Checkbox

Check this box if the element is a benefit and part of regular pay.

Leave this field blank for expenses, deductions, and non-standard benefits such as bonuses which are only calculated periodically. In this case the system applies a flat tax rate to the benefit amount.

Exclude Without Wages – Checkbox

Check this box if the element is a non-cash benefit and does not require tax calculation on the amount if there are no basic wages for the pay.

Cash – Checkbox

Check this box for deductions that allow for the employee to withdraw monies. This usually applies to pension plans, savings plans, or 401K type deductions.

Deduction ID

Select the ID that matches the deduction with a recognized, government approved, deduction taxation category. This ID is used when processing regular pay runs. It is also used when processing irregular pay runs if the Supplemental Deduction ID field is blank. Vertex provides for a list of available deduction ID numbers.

Through the deduction ID, Vertex verifies the admissibility of pre-tax deductions and controls the maximum limits on the tax.

This is mandatory for deductions but must be blank for benefits and expenses.

Supplemental Deduction ID

The supplemental deduction ID is used when processing irregular pay runs. If the Supplemental Deduction ID is blank, then the Deduction ID is used in processing. Vertex provides for a list of available supplemental deduction ID numbers.

Country Code

This field is read-only.