Clients > Payroll Taxes tab

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The Payroll Taxes tab provides a single location for virtually all tax-related setup for a client. Use this tab to view and configure applicable taxes for the client, filing frequencies, applicable forms, and to link agents to a tax or taxes for payment purposes.

The application determines the taxes applicable to a given client based on the client's work location addresses and ZIP codes entered in the Main tab of the Clients screen and resident addresses of all current and inactive employees. Therefore, it is very important to use the Address verification feature when entering address information for clients and employees.

For clients who are part of a payroll consolidation, you can modify information in the Taxes section only. To modify information in any of the other sections, you must make the changes in the Setup > Payroll Consolidation Groups > Payroll Tax Forms tab.

Choose Setup > Clients and then click the Payroll Taxes tab.

Fields & buttons

General federal payroll tax information is listed in this section. Enter information as appropriate.

  • EIN/SSN. Enter the client's Employer Information number. Changing the information in this field will also change the EIN/SSN information on the Main tab, and vice versa.
  • Employer type. Select the employer type that applies to the client. This selection will affect the federal forms displayed in the Forms section below.
  • Use whole-dollar rounding. Mark this checkbox to have the application automatically round amounts to the appropriate whole dollar when calculating federal withholding for the client. For pennies of 49 cents or less, it will round down, and for pennies of 50 cents or greater, it will round up during check entry.
  • Seasonal Employer. Mark the checkbox if this client is a seasonal employer. The application marks the Seasonal checkbox on page 2 of Form 941 for this client, and it may also affect certain state payroll tax forms. (See Processing tips for state-specific payroll tax forms) to determine which states use this checkbox.
  • Deposit schedule. Select a Monthly, Quarterly, or Semiweekly (Federal) deposit schedule for this client. (This field defaults to the default deposit schedule selected in the Setup > Firm Information > Tax Agents screen or, if you are using a client template, to the selection made in that template.)
  • 943 Deposit Schedule. This field is available only when one of the following employer types is selected for this client: Agricultural (943), Regular (941) and Agriculture (943), or Regular (944) and Agriculture (943). You can select Monthly, Quarterly, or Semiweekly (Federal) as the deposit schedule for this client. (This field defaults to the default deposit schedule selected in the Setup > Firm Information > Tax Agents screen or, if you are using a client template, to the selection made in that template.)

The fields in the State section enable you to view and modify the state unemployment and state and local withholding information for the selected client.

  • State. If the client has a presence in only one state, that state displays in this field. If the client has a presence in multiple states, you can select each state from the drop-down list, one at a time, to view or modify unemployment and state and local withholding information. 

    Note: When you click Enter to save your changes, the entries in the State field revert automatically to their default alphabetical order. The state that you modified may not be displayed in the field, but it will be saved.

  • Unemployment ID. Enter the client's unemployment identification number.
  • UI Base rate. Enter or modify the base rate and effective date for state unemployment for this client. Click the Ellipsis button button to open the Unemployment Rate dialog, where you can enter or modify the base rate for the client and add rates for other periods. Some states have supplemental rates, and if these are applicable to the currently selected state, they will be listed in the Unemployment Rate dialog. If the client is a reimbursable employer, the option to specify this is also available in the Unemployment Rate dialog, if applicable.
  • Total UI rate. The total UI base rate is displayed here.
  • Effective date. This field displays the effective date for the current rate.
  • Local button. Click this button to open the Local dialog, where you can view the list of local taxes that apply to this client, enter or modify the Withholding ID for each tax, modify the deposit schedule for the agent that corresponds to each tax, and, if appropriate, specify that the client has nexus in this locality.

    Note: The Local grid includes only localities that are assigned to a tax agent. If a locality is not part of a tax agent that is already provided by the application, you will need to add a local jurisdiction tax agent before the locality will display here in the grid.

  • Withholding ID. Enter the client's state withholding ID number. Show me.
    state withholding ID
  • Deposit schedule. Select the appropriate deposit schedule for this client's state withholding. The available selections vary by state. Click the Ellipsis Ellipsis button button to open the Deposit Schedule dialog, where you can schedule the effective date on which to begin using a deposit schedule.
  • Govt. reimbursable employer. (New Jersey only.) When this checkbox is marked:
    • The application calculates the employee unemployment insurance taxes on payroll checks (SUI, SDI, and FLI) at the separate rate given by the state for Governmental Reimbursement Employers. For more information, see the state's Rate information, contributions, and due dates web page.
    • The application updates the modified rates appropriately on Form NJ-927 for employers specified as Govt. reimbursable employers.
  • Client has nexus in this state. Mark this checkbox if the client has business presence in this state. This field is used for determining tax calculations, including reciprocal agreements between states, if applicable. If the business location is in the selected state, this checkbox will be marked and grayed out by default.
  • Use whole-dollar rounding. Mark this checkbox to have the application automatically use whole dollar rounding when calculating state withholding for the client. If you choose whole-dollar rounding, pennies of 49 cents or less will round down, and pennies of 50 cents or greater will round up during check entry. If whole-dollar rounding is required by the state, this checkbox will be marked and grayed out by default.

The Taxes section contains grids that list the federal, state, and local taxes for which the client may be liable.

  • Do not combine state unemployment. When this checkbox is marked (the default setting for new clients), the application calculates employee and employer-paid state unemployment and insurance taxes (including SDI, TDI, FLI as applicable) for the state separately--based only on wages earned in that state. If the checkbox is not marked, the application calculates unemployment and insurance taxes for the state associated with the employee’s primary location based on wages earned in any state. Example


    An employee earns wages in both California and Nevada, and the employee's primary work location is in California.

    With the Do not combine state unemployment checkbox not marked, the application calculates state unemployment and disability for California based on wages earned in both California and Nevada. The employee is not subject to Nevada unemployment. (See the State of California Employment Development Department Information Sheet DE 231D for details on this scenario.)

    With the Do not combine state unemployment checkbox marked, the application calculates employment taxes for both California and Nevada. Wages earned in California are subject only to California unemployment and disability. Wages earned in Nevada will be subject only to Nevada unemployment.

  • Do not create tax liabilities. When this checkbox is marked, no tax liabilities are generated for the selected client. This option would be appropriate for clients whose tax liabilities are paid outside of the application, and should therefore not generate unprinted checks.

    Note: When the checkbox is marked, after-the-fact payroll checks are not available in the Generate Liabilities dialog.

  • Taxes grids. In the grids you can modify the GL liability and expense accounts and (for state and local taxes) the agents. In the Wage Exempt column, you can specify if the client is exempt from specific taxes.


    • For federal taxes, you cannot change the selection in the Agent column because the agent is determined automatically based on the type selected for the employees in the Main tab of the Employees screen at the time payroll checks are entered.
    • You can modify the text in the Description column. These changes are reflected immediately in employee records, checks, reports, etc.
    • To specify the text to use for box 14 on the client's W-2 forms, enter a description in the Box 14 column. See Adding state/local specific information to Form W-2 box 14 for details.

The Forms section lists all payment, reconciliation, W-2, 1099, and 1095-C forms that the client may potentially be required to file.

Note: All forms in this grid will be available for this client in the Actions > Process Payroll Tax Forms and Actions > Edit Payroll Tax Forms screens unless you have marked the Do not file checkbox for a form in this grid.

  • The federal 94x forms that are listed here are based on the selection in the Employer type field above.
  • The application uses the selection in the Type column to determine which forms are available for processing for the client. For example, in the Process Payroll Tax Forms screen, when you select Payment in the Form type field and then click the Refresh button, the application displays the forms for which Payment was selected here.

In the Forms grid, you can change the filing method to use for each form, specify whether or not you want to print filing instructions for forms that use the Paper filing method, and choose not to file a particular form for this client.

For each jurisdiction listed in the forms grids, there is an Additional Information button, which you can click to open the Additional Information dialog for that jurisdiction (either US or specific state). Use this dialog to enter additional information unique to the form processing requirements.

Note: Some forms may not be displayed due to an employer type, deposit schedule, and/or reimbursable employer status.

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