Enter Federal Tax Information
The information in the Federal Tax window comes from IRS Publication 15-T (Federal Income Tax Withholding Methods). If needed, you can make changes to it.
- On the Payroll tab, click Tax Setup > Federal Tax.
- In the window, enter the rates or limits you want to change.
- Annual Withholding Allowance—Enter the annual withholding allowance amount.
- Supplemental Earnings Rate—Enter the supplemental earning rate.
- Nonresident Alien Wage Addition—Enter the nonresident alien wage addition rate.
- Federal Insurance Contribution Act (FICA)—Enter the current rates and limits for Employee Social Security and Employee Medicare, which combine to form the Combined Employer FICA rate. Enter the rates and limits for Employee Medicare Over Limit. The government may assess an additional tax on the employee share of Medicare for wages exceeding a certain amount per year.
- Federal Unemployment Tax Act (FUTA)—When you loaded this year's federal tax changes, the current federal amounts for FUTA are automatically inserted here. If you need to adjust this amount based on the rules laid out in IRS Publication 15-T (Federal Income Tax Withholding Methods), you can manually do so. If you are not liable for FUTA tax, enter 0 for the Rate and Limit.
- At the top, click Save.