This program allows the user of the FACTS System to create and maintain records in the Payroll Tax Tables File.
Payroll taxes defined in this file are used by the system to calculate tax amounts on payroll checks. The taxes in these tables, except for FICA, should represent annual tax rates. By entering annual rates, the computer may calculate taxes, using a single table, for any pay period (weekly, monthly, etc.).
Federal tax tables for married and single persons should be entered along with all applicable state, local and miscellaneous payroll tax tables.
NOTE: FICA is a special case and must be entered with certain restrictions in order to work correctly. These restrictions are:
NOTE: No changes should be made to this program for the new tax year until after the W-2 Information Capture (PRU820) is run for the previous year.
For more information how to use maintenances, refer to the following topics:
How to use file maintenance programs
1. Tax Code
Enter 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. F2 allows a search.
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
Enter the tax table description (up to 25 characters).
3. Annualize
Enter 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. CR initially defaults to Y.
4. Federal Tax Amount Exempt
Enter Y or N to indicate whether to exclude the amount paid in federal taxes. CR initially defaults to N.
5. Minimum Deductions
Enter 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). CR initially defaults to 0.
6. Maximum Deductions
Enter 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). CR initially defaults to 0.
7. Standard Deductions Subtracted Amount
Enter 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. CR initially defaults to 0.
This amount should not be lower than the minimum deduction (field #5) or higher than the maximum deduction (field #6).
8. Standard Deductions %
Enter 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). CR initially defaults to 0.
9. Exempt Amount 1
Enter amount for the first exemption to be subtracted from earnings before taxes are applied (0-99999). CR initially defaults to 0.
10. Exempt Amount 2
Enter amount for the second exemption to be subtracted from earnings before taxes are applied (0-99999). CR initially defaults to 0.
11. Exempt Amount 3+
Enter amount for any exemptions (over 2) to be subtracted from earnings before taxes are applied (0-99999). CR initially defaults to 0.
12. Exempt Before Or After
This feature allows for the subtraction of exempted amounts either B-before or A-after tax calculations. CR initially defaults to B.
13. Fixed Tax Rate
Enter the fixed tax rate percentage (0-99.99) if applicable. CR initially defaults to 0 and skips field #14.
14. Employer Matching
Enter the employer matching rate percentage (0-99.99) if applicable (i.e., FICA). CR initially defaults to 0.
15. Tax Calculation Program
Enter the program which performs the tax calculations. CR initially defaults 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.
Enter the percentage of taxable earnings to be taxed in this tax bracket (0-99.99). CR initially defaults to 0.
Enter the amount to be taxed in addition to the percentage amount of this bracket (0-99999.99). CR initially defaults to 0.
Enter the upper limit of this tax bracket (0-9999999). CR initially defaults to 0.