Maintaining Tax Deductions

Set up tax deduction information with the Tax Deductions form.

Tax Deduction

Establish the general information for each deduction with the Tax Deductions panel.

To configure deduction information:

1. Complete these fields as required.
Option Description

Authority ID

Tax authority identification number.

Tax Identifier

Tax Identifier that represents the tax type. The system displays the field on the State Tax Rates (SUTA) form to enter this value.

Tax Description

Description for this deduction.

Paid By

Payer of this tax, either Employer or Employee.

Pay Stub Name

Name that prints on check stubs and certain reports.

Suppress Reporting PrismHR & to Mastertax
• Unchecked: When unchecked, the APTM tax code appears in the JSON files namely Periodic Tax JSON export, Daily Tax JSON export, Quarterly Tax JSON export and PrismHR Client Setup JSON export.
• Checked: When checked, the APTM tax code does not appear in the JSON files noted above. The total tax amounts are reduced by the suppressed tax amount in the JSON file in all fields (Total Tax, EE total tax, Periodic, QTD, YTD totals)

Suppress From Mastertax RTS if No Wages In Quarter

Select if you want to suppress reporting for this tax code on the MasterTax RTS if there are zero wages for the quarter.

SUTA Component

Select to indicate that this tax code is a component of SUTA. The reporting basis (Client/Employer) is established based on the SUTA reporting basis.

Calculate/Report at Client Level (PEOs Only)

Select if PEOs must calculate and report this tax deduction at the client level. If you select this option, enter the Basis From Date and Basis To Date, which is the date range over which the system should calculate and report this deduction at the client level.
2. Click Save.

Bill Codes

Enter the billing codes for the tax deduction with the Bill Codes panel.

To set bill codes:

1. Complete these fields as required:

Field

Description

Bill Code Substitute

Code used in place of the standard system-assigned billing code.

Overlimit Bill Code

Controls the Overlimit Billing Amount if high limit is not selected for bundled billing. If you do not enter a code, the system uses the active tax billing code.

Bun Overlim Credit Bill Code

Bills the client if the bundled billing credit exceeds the limit. If you do not enter a code, the system credits 006O.

Shelter Bill Code

Controls the sheltered billing amount if Discount Shelter is not selected for bundled billing. If left blank, the system uses the active tax billing code.
2. Click Save.

Tax Deduction Administrative Fund

Establish the tax deduction information with the Tax Deduction Administrative Fund panel.

Note:  The information on the Tax Deduction Administrative Fund panel is for reporting purposes only. The system does not perform calculations on this information.

1. For the deduction administrative fund:
• Enter the Admin Tax Year.
• Enter the Admin Tax Rate.
2. Click Save.