Calculate Taxes

This is the fifth screen of the check import wizard. Use this form to calculate taxable earnings on pay checks and create payroll vouchers.

Note the following:

• The Calculate Taxes option on the steps indicator at the top is highlighted to indicate that you are on this screen.
• You can only access this screen from the Review & Fix Data screen.
• You cannot find this screen using the normal search function.
• You cannot save this screen to your Favorites.
• Client Access Group security is enabled on this form.

After calculating taxes, you should compare the totals to the reports from the original system to make sure that the checks and totals match.

You must calculate taxable earnings and create payroll vouchers successfully before finalizing the import. The Finalize & Post button will remain grayed out till you calculate taxable earnings and create payroll vouchers successfully for this check import batch. If you try to run Finalize & Post before calculating taxable earnings and payroll vouchers are created for this check import batch, you will get a prompt stating "Taxes have not been calculated for this batch. You must run the Calculate Taxable Earnings & Create Vouchers process."

To calculate taxable earnings and create payroll vouchers, complete the following:

1. Click Calculate Taxable Earnings & Create Vouchers. A job progress window appears showing the processing. The system first calculates taxable earnings and then creates payroll vouchers.
a. If payroll vouchers have already been created for this check import batch a pop-up message displays, Payroll vouchers have already been created for this batch. Do you want to delete them and create new payroll vouchers?
i. Click OK if you want to delete the existing payroll vouchers of this check import batch and create new ones.
ii. Click Cancel if you do not want to delete the existing payroll vouchers of this check import batch.
b. If the system finds any errors on either process, it will show up on the job progress window.
i. Click Close to close the job progress window. A pop-up message confirms that The Create Payroll Vouchers process completed with errors. Click OK to proceed.
ii. Click Error Report to view the Error Report for Create Payroll Vouchers Process for this check import batch on screen. Click the XLS link to download this error report to your system to review and make the necessary adjustments.

Note:  The Error Report button only displays if errors are found while running these processes.

2. Click Previous to go back to the Review & Fix Data screen to make the adjustments.
3. Once all errors are fixed for this check import batch, you will see the following sections on the screen:
a. Summary section, which displays the total:
• Number of Payroll Vouchers for this check import batch
• Gross Earnings for this check import batch
• Federal Taxable Pay for this check import batch
• Deductions for this check import batch
• Federal Tax for this check import batch (tax code 00-10)
• FICA Tax for this check import batch (OASDI 00-12 + Medicare 00-11)
• State Tax for this check import batch (Income and Disability)
• Other Taxes for this check import batch
• Expenses for this check import batch
• Net Pay for this check import batch

The Voucher Summary Report button is available on the top-right in the Summary section only after you have calculated taxable earnings and created vouchers in the Calculate Taxes screen in the Check History Import form. Click this button to download the report in a .csv format. This report runs off the generated vouchers, that is, all vouchers in the current/selected batch and grand totals. Checks not imported are not included in this report. The report is sorted first by the employee's last name and then by the voucher number. The report has the following columns:

Batch ID, Batch Name, Client ID, Client Name, Employer ID, Employer Name, Voucher Number, Employee Name (in Lastname, Firstname format), Employee ID, Pay Date (in MM/DD/YYYY format), Hours/Units, Federal Taxable Pay, Gross Earnings, Deductions, Federal Tax, FICA Tax, State Tax, Other Tax, Expenses, Net Pay

The TOTALS row provides totals for the following columns:

Hours/Units, Federal Taxable Pay, Gross Earnings, Expenses, Deductions, Federal Tax, FICA Tax

Note: All numbers are formatted up to two decimal places; for example, 1,234,567.89.

b. Total Taxes section, which displays the totals of all the different Employer and Employee paid taxes contained in this check import batch.
i. The Employee Tax table displays the total value of each of the tax descriptions for this check import batch including the tax code, the taxable amount and the withheld amount.
ii. The Employer Tax table displays the total value of each of the tax descriptions for this check import batch including the tax code, the taxable amount and the tax amount.

The Total Taxes Report button is available on the top-right in the Total Taxes section only after you have calculated taxable earnings and created vouchers in the Calculate Taxes screen in the Check History Import form. Click this button to download the report in a .csv format. This report runs off the generated vouchers - all imported vouchers in the current/selected batch and grand totals. Checks not imported are not included in this report. The report has the following sections:

• First Section contains:
• Batch ID - This is the batch number.
• Batch Name - The name of the batch.
• Client - In format “<client ID> - <client name>”, for example “102 - Arrow Technologies”.
• Employer - In format “<Employer ID> - <Employer name>”, for example “102 - Arrow Technologies”.
• Total Gross Earnings - For this batch.
• Total Net Pay - For this batch.
• Expenses - For this batch.
• Second Section contains Employee Deductions/Taxes, Employee Contributions/Taxes sections for the batch and their TOTALS broken up into columns.
• EMPLOYEE TAX section contains the following columns:
• Tax - Employee paid tax description; for example, Federal Income Tax and Medicare for the batch. Employee paid taxes typically include Federal Income Tax, Earned Income Credit (EIC), OASDI (Social Security Tax), Medicare, State Taxes as applicable etc.
• Prism Code - Corresponding Prism Codes for the batch; for example, 00-10 and 00-11.
• Imported Code - Corresponding Imported Code for the batch.
• Taxable - Corresponding taxable amount for each of the employee paid taxes noted above for the batch; for example, 10,000.00 and 10,000.00t.
• Withheld - Corresponding amount withheld for each of the employee paid taxes noted above for the batch; for example, 1,000.00 and 145.00.
• TOTALS - Total amount of employee paid tax withheld for the batch; for example, 1,145.00.
• EMPLOYER TAX section contains the following columns:
• Tax - Employer paid tax description; for example, FUTA and Medicare for the batch. Employer paid taxes typically include FUTA, OASDIER (Social Security Tax - employer contribution), MedicareER (Medicare - employer contribution), Employer contribution to State Taxes as applicable, and so on.
• Prism Code - Corresponding Prism Codes for the batch; for example, 00-17 and 00-15.
• Imported Code - Corresponding Imported Code for the batch.
• Taxable - Corresponding taxable amount for each of the employer paid taxes noted above for the batch; for example, 10,000.00 and 10,000.00.
• Withheld - Corresponding amount withheld for each of the employer paid taxes noted above for the batch; for example, 600.00 and 145.00.
• TOTALS - Total amount of employee paid tax withheld for the batch; for example, 745.00.
c. Vouchers section, which displays the following:

Voucher Details Report button is available on the top-right in the Vouchers section only after you have calculated taxable earnings and created vouchers in the Calculate Taxes screen in the Check History Report form. Click this button to download the report in a .csv format. This report runs off the generated vouchers - all vouchers in the current/selected batch and grand totals. Checks not imported are not included in this report. The report is sorted first by the employee's last name and then by the voucher number. The report has the following sections:

• First Section contains:
• Employee Name (all caps, as header for the voucher)
• Batch ID & Voucher Number
• Company - In format “<client ID> - <client name>”, for example “102 - Arrow Technologies” & Pay Date in MM/DD/YY format
• Employer - In format “<Employer ID> - <Employer name>”, for example “102 - Arrow Technologies” & Period Begin Date in MM/DD/YY format
• Employee ID & & Period End Date in MM/DD/YY format
• Employee Name - In format “Last Name, First Name” & Work State (two letter State Code)
• Gross Pay & Weeks Worked
• Non-Cash Pay & 1099 Check? (Y/N)
• Non-Taxable Pay & School District
• Gross Receipts
• Net Pay
• Second Section contains Earnings, Employee Deductions/Taxes, Employee Contributions/Taxes sections for each voucher and their TOTALS broken up into columns.
• EARNINGS section contains the following columns:
• Description - Pay Code description; for exampl,e Regular Pay and Tips.
• Prism Pay Code - Corresponding Prism Pay Code for the Description above; for example, REG and TIPS.
• Imported Pay Code - Corresponding imported pay code for the prism pay codes, for example, Regular and Tips.
• Hours/Units - Corresponding Hours or Units worked for each pay code noted above; for example, 40 and 1.
• Amount - Corresponding earnings for each pay code noted above; for example, 1,750.00 and 250.00.
• TOTALS - Totals for earnings noted above; for example, 2,000.00 (1,750.00+250.00)
• EMPLOYEE DEDUCTION/TAXES section contains the following columns:
• Description - Employee Deduction or Tax description; for example, Federal Income Tax and Medicare. Employee Deductions/Taxes typically include as applicable State Taxes, Federal Income Tax, Medicare, Social Security and other deductions; for example, Christmas Club, and so on.
• Prism Code - Corresponding Prism Code; for example, 00-10 and 00-11.
• Imported Pay Code - Corresponding Imported Code.
• Amount - Corresponding Amount of deduction or tax; for example, 100 and 62.
• TOTALS - Total amount of deduction and taxes for the employee; for example, 162.
• EMPLOYEE CONTRIBUTION/TAXES section contain the following columns:
• Description - Employer Deduction/Contribution or Tax description; for example, FUTA and Medicare. Employer Contribution/Taxes typically include as applicable State SUTA, FUTA, Medicare, Social Security, Safe Harbor Type 1, HSA Match etc.
• Prism Code - Corresponding Prism Code; for example, 00-17 and 00-15.
• Imported Pay Code - Corresponding Imported Code.
• Amount - Corresponding Amount of deduction/contribution or by employer tax; for example, 98 and 59.
• TOTALS - Total amount of deduction and taxes for the employee; for example, 157.

An Inline Grid displays the first twenty voucher numbers on the screen. If there are more than twenty vouchers in the check import batch, click the arrows in the bottom-right of your screen to navigate and view them. The vouchers are sorted by employee last name and then employee first name in an ascending order.

• Voucher Number - shows the Payroll Voucher number. Click the voucher number to view the employee payroll voucher in a modal. You cannot edit any values on this Payroll Voucher screen. You can navigate to the various tabs on the Payroll Voucher form for further details on this employee payroll voucher. Click Cancel or Close to exit the modal.
• Name - shows the Employee Name for each of the corresponding payroll vouchers for this check import batch. The employee name is shown in Lastname, Firstname format.
• Employee ID - shows the Employee ID for each of the corresponding payroll vouchers for this check import batch.
• Hrs/Units - shows the hours/units worked by the employee for the corresponding payroll vouchers for this check import batch.
• Gross Earnings - shows the gross earnings for each of the corresponding payroll vouchers for this check import batch.
• Federal Tax Pay - shows the federal taxable pay for each of the corresponding payroll vouchers for this check import batch.
• Deductions - shows the total deductions for each of the corresponding payroll vouchers for this check import batch.
• Taxes - shows the total taxes for each of the corresponding payroll vouchers for this check import batch.
• Net Pay - shows the net pay for the employee for the corresponding payroll vouchers for this check import batch.
4. Click Close to go back to the Managing Batches for Check Import Process screen. Payroll vouchers are created but are not posted. You can always come to this screen later and post them or delete the created payroll vouchers and create new payroll vouchers and post them.
5. Click Finalize & Post. A prompt displays, which asks, Do you want to update MasterTax? If you select Yes, the system will create tax journal entries for the imported vouchers and vouchers will be reported via the MasterTax PTS file.
• Click Yes if you want to update the MasterTax PTS file.
• Click No if you do not want to update the MasterTax PTS file.
6. A job progress window opens showing the processing of the finalizing and posting of payroll vouchers for this check import batch.
7. Click Close once the register update process is complete. A prompt tells you The Finalize and Post process completed successfully. Click OK.
8. The Import Complete screen opens.