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Product support for the ended on September 30, 2020.
- Write Up CS
- Payroll CS
- Engagement CS
- Client Bookkeeping Solution
- Financial Analysis CS
Help & How-To Center content for the Creative Solutions Accounting platform may be outdated and is used at your own risk.
Use the Tax Treatment tab of the Pay Items dialog or the Deduction Items dialog to specify whether various federal, state, and local taxes are to be included in the tax calculation of the selected payroll item.
Choose Setup > System Configuration and then choose Pay Items or Deduction Items. When the dialog appears, choose the Tax Treatment tab.
To define the localities that will appear in the Local Taxes grid on this dialog, choose Setup > System Configuration > Payroll Tax Information > Local.
See also
Pay Items dialog
Deduction Items dialog
Fields & buttons
Shows the description of the currently selected payroll item.
When adding a new pay item, all of the following checkboxes are already marked as the default setting. However, when adding a new deduction item, none are marked as the default setting.
- FICA - Social Security
- FICA - Medicare
- Federal withholding
- Federal unemployment
Pay Item
A marked checkbox indicates that the selected pay item is subject to that type of tax.
Deduction Item
- For a deduction item with a calculation type of <None>, Fixed Amount, Gross Income Percentage, or Hourly Amount, the program will calculate and subtract the deduction before calculating the taxes that you select.
- For a deduction item with a calculation type of After-tax Income Percentage, the program will calculate and subtract the deduction after having calculated the taxes that you select.
- The checkboxes are not relevant for any Net Income Percentage deduction item.
Taxable by, Subtract, or Except
You may choose All, None, or Selected from the drop-down list, as applicable for this payroll item. (When adding a new pay item, this field defaults to All. When adding a new deduction item, this field defaults to None.)
State Taxes grid
This grid is accessible only if the Taxable by (for pay items), Subtract ( for pre-tax deductions), or Except (for after-tax deductions) field, as applicable, is set to Selected. The four checkbox columns in the grid denote the following, from left to right: state withholding; employer-paid state unemployment; employee-paid state unemployment insurance; and employee-paid state disability insurance.
For a pay item
For each local jurisdiction applicable for any of your payroll clients, mark the appropriate checkboxes to indicate that the selected pay item is subject to that type of tax.
For a deduction item
- For a deduction item with a calculation type of <None>, Fixed Amount, Gross Income Percentage, or Hourly Amount, the program will calculate and subtract the deduction before calculating the taxes that you select.
- For a deduction item with a calculation type of After-tax Income Percentage, the program will calculate and subtract the deduction after having calculated the taxes that you select.
- The checkboxes are not relevant for any Net Income Percentage deduction item.
Taxable by, Subtract, or Except
You may choose All, None, or Selected from the drop-down list, as applicable for this payroll item. (When adding a new pay item, this field defaults to All. When adding a new deduction item, this field defaults to None.)
Local Taxes grid
This grid is accessible only if the Taxable by (for pay items), Subtract (for pre-tax deductions), or Except (for after-tax deductions) field, as applicable, is set to Selected.
For a pay item
For each local jurisdiction applicable for any of your payroll clients, mark the appropriate checkboxes to indicate that the selected pay item is subject to that type of tax.
For a deduction item
- For a deduction item with a calculation type of <None>, Fixed Amount, Gross Income Percentage, or Hourly Amount, the program will calculate and subtract the deduction before calculating the tax that you select.
- For a deduction item with a calculation type of After-tax Income Percentage, the program will calculate and subtract the deduction after having calculated the tax that you select.
- The checkbox is not relevant for any Net Income Percentage deduction item.
To define the localities that will appear in the Local Taxes grid on this dialog, choose Setup > System Configuration > Payroll Tax Information > Local.
CREATIVE SOLUTIONS ACCOUNTING
