Setting up client payroll tax information

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The Payroll Taxes tab of the Clients screen provides a single location for virtually all tax related setup for a client. It provides the ability to view and configure applicable taxes for the client, filing frequencies, applicable forms, and allows you to link agents to a tax or taxes for payment purposes.

The taxes applicable to a given client are determined by the application based on the client's work location and taxing address and ZIP code entered in the Main tab of the Clients screen and each of the employee's resident addresses, making it very important to use the Address verification feature when entering address information for clients and employees.

To set up the appropriate taxes and forms for your client, follow these steps.

  1. Verify the location > taxing address information for your client and their employees. Because the application uses this information to determine what taxes and forms are applicable to the client, it is very important to use the Address verification feature when entering address information for clients and employees, especially if local taxes exist for the state.
  2. Choose Setup > Clients and click the Payroll Taxes tab.
  3. In the Federal section, federal information is displayed for the client. Verify the EIN/SSN, select the employer type from the drop-down list - the default is Regular (941), select the appropriate deposit schedule, and mark any applicable checkboxes.
  4. In the State section, verify, add, or modify information as appropriate for each state and locality in which the client has locations or employees. (If the client uses multiple states, select each state in turn from the State drop-down list.)

    Notes: The information you enter in the Federal and State sections (such as deposit schedule information and employer type) directly affect the forms that display in the Forms section in this screen as well as the forms that display in the Actions > Edit Payroll Tax Forms screen and Actions > Process Payroll Tax Forms screen for this client.

    To update the state unemployment tax rate, click the ellipsis button in the UI base rate field. In the Unemployment Rate dialog window, click Add to create a new unemployment rate. Then, enter the Effective date of the rate change, the base rate, and any other state-specific rates applied to the unemployment tax. When you are finished, click Enter to save the new rate.

  5. In the Taxes section, mark the checkboxes above the grids only if they apply for the client. (For more information, refer to the explanations of the checkboxes in the Fields & buttons section of the Clients > Payroll Taxes tab topic.
  6. The Taxes grids list the state, local, and federal taxes for which the client is (or may be) responsible. Modify the GL liability and expense accounts here, if necessary, and also mark any particular tax as wage exempt for this client, if applicable.
  7. The Forms section grids update to reflect your entries in the Federal and State sections of this screen and display all forms that your client may be required to file. a) Verify or modify the filing method for each form, if necessary, b) Change the selection in the Filing Instruction drop-down list to specify if you want to print filing instructions with the filing copy, the client copy, both copies, or neither copy. c) Mark the Do not File checkboxes next to any forms that your client will not need to file.
  8. For each jurisdiction listed in the forms tables, click the Additional Information button to open the Additional Information dialog for that jurisdiction (either US or specific state). This dialog allows you to enter additional information unique to the form processing requirements.
  9. Click the Enter button to save the information.

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