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Payroll Tax Maintenance: What Constitutes a Tax to Show on a Paycheck?

  • 6 February 2023
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Hello Everyone,

I am trying to clean up some tax issues that arose on the last payroll paybatch we ran after a recent upgrade. Specifically there are a few taxes that have appeared on a recent payroll payrun that were not there before the upgrade. 

In one case I had the NV ER SUTA SC show up. We caught it on the payroll liabilities bills run. In another case I have New Mexico Workers Comp showing up as a tax on a few employees paychecks as well. We upgraded to 2021R2 21.213.0038.

What is the fool-proof way to make sure they do not appear on the paychecks next time? Is it to de-select all the “required” checkboxes and set the rates to 0.00 on the right panel? Then update/assign taxes to employees?

Why would New Mexico Workers Comp show up as a tax? Is there a setting in Deduction Codes or Workers Comp Codes?

 

 

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Best answer by pbennett 6 February 2023, 21:36

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As a general rule only taxes that are employee taxes should show up on hte check. I know there was an issue with the SUTA sc showing up on the W2s as local taxes which is incorrect. if you see anything different you should open a case eith Acuamtica or your partner because I think it might be a bug

 

Userlevel 3
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As a general rule only taxes that are employee taxes should show up on hte check. I know there was an issue with the SUTA sc showing up on the W2s as local taxes which is incorrect. if you see anything different you should open a case eith Acuamtica or your partner because I think it might be a bug

 

Thanks. I thought it may be a bug but wanted to check first.

Hello, 

The tax codes are based on the employee’s home location and work location along with the settings selected in Tax Settings. If an employee has a work location or home location as New Mexico it will pull in the tax. However there are settings to control which is used for SUTA and which for income tax. If you only file SUTA in one state, then go to Tax Maintenance>Tax Settings> Base of Operations State and enter the value for the state that your company files in (1st screenshot). You can deselect the Allow Employee Override so it cannot be changed at the employee level. 

Then also, for the employee(s) who are associated with the New Mexico taxes, go to their Employee Payroll Settings and Tax Settings Tab. Be sure that the state they are a resident of has Employee is a Resident of the State or Location marked. Also on the Taxes tab of the Employee Payroll Settings, be sure to look at the state tax code for where they live. Some states, especially if there are jurisdictional taxes, have another box to mark if they are a resident there. This will allow the system to know which is home vs worked state for income tax. 

 

Let me know if you have additional questions. 

 

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