Tax Table F/M (PRF940) Field Descriptions

Use these fields to create a tax table.

1. Tax Code

Specify any three characters to identify this tax table. The first-two characters of the code must be a valid tax district code entered through the Tax District Information F/M.

     Tax Type

When the tax code is entered, the tax type is displayed, X-stands for FICA, F-federal, S-state, L-local, 1-miscellaneous 1 or 2-miscellaneous 2. No field is necessary. The system assigns this type from the tax district information file.

2. Description

Specify the tax table description (up to 25 characters).

3. Annualize

Specify Y or N to determine if the employee’s earnings are multiplied by the number of pay cycles in a year in order to annualize taxes.

4. Federal Tax Amount Exempt

Specify Y or N to indicate whether to exclude the amount paid in federal taxes.

5. Minimum Deductions

Specify the minimum amount that can be deducted from earnings either before or after (depending on whether B or A is entered for field #12) taxes are applied (0-99999).

6. Maximum Deductions

Specify the maximum amount that can be deducted from earnings either before or after (depending on whether B or A is entered for field #12) taxes are applied (0-99999).

7. Standard Deductions Subtracted Amount

Specify the amount to be subtracted from earnings either before or after (depending on whether B or A is entered for field #12) taxes are applied.

This amount should not be lower than the minimum deduction (field #5) or higher than the maximum deduction (field #6).

8. Standard Deductions %

Specify the percentage of earnings (if any) to be deducted from taxable earnings (0-99.99). When calculating the standard deductions, the system never deducts less than the minimum (field #5) or more than the maximum (field #6).

9. Exempt Amount 1

Specify amount for the first exemption to be subtracted from earnings before taxes are applied (0-99999).

10. Exempt Amount 2

Specify amount for the second exemption to be subtracted from earnings before taxes are applied (0-99999).

11. Exempt Amount 3+

Specify amount for any exemptions (over 2) to be subtracted from earnings before taxes are applied (0-99999).

12. Exempt Before Or After

This feature allows for the subtraction of exempted amounts either B-before or A-after tax calculations.

13. Fixed Tax Rate

Specify the fixed tax rate percentage (0-99.99) if applicable. Press Enter to initially default to 0 and skip field #14.

14. Employer Matching

Specify the employer matching rate percentage (0-99.99) if applicable (i.e., FICA).

15. Tax Calculation Program

Specify the program which performs the tax calculations. Press Enter to initially default to the standard program (PRC210.) If custom modifications need to be made for tax calculations, use PRC210 as the model program. Copy PRC210 to another program (example PRC220) and make modifications to the new program.

16-19. Amounts 1-4

The amount descriptions are set up in the Tax District Information F/M program. These amounts are used if customer modifications are needed (see field #15) and are built into the standard tax calculation program PRC210.

If fixed rate tax codes are used, the table is not accessible and the rest of the fields are skipped. If fixed rate tax codes are not used, proceed to field #20.

20-34. Brackets

Tax is calculated in the standard program PRC210 as follows:

The base is tax to be paid (not a taxable amount). The system calculates the percent of the difference between the previous upper limit and the current upper limit. This total is added to the base to calculate the total tax.

35. Employer Adjust

The amount to adjust the employer's tax percentage (positive or negative). This value should be 2% for the FCA tax table.

36. Bracket

The highest bracket to apply the adjustment to. This value should be 1 for the FCA tax table.

       Percent

Specify the percentage of taxable earnings to be taxed in this tax bracket (0-99.99).

       Base

Specify the amount to be taxed in addition to the percentage amount of this bracket (0-99999.99).

       Upper limit

Specify the upper limit of this tax bracket (0-9999999).