Taxing Criteria

 

Subject To:  If  this employee is subject to this type tax  use “Y” if not subject use “N”.

Note:  There is an exception for federal, state, and local withholding taxes.

 If the employee is subject to one of these taxes but does not want any taxes withheld use an “X”  instead of  “N”.  This will include the employee’s wages in federal and state reports as taxable wages but it will not withhold any tax from the check.

State and Local Code fields  are use to identify the state or locality in which the wages are earned.

Rate  is the worker’s compensation rate per  $100 earned.

Additional Tax Section:  is used to withhold extra federal or state withholdings.

      Fixed Amount Box  if the amount to be withheld is a fixed amount then check this box.

      Additional Box  if the amount is to be added to the calculated amount then check this box.

      Type  designates wither the amount in the next field is a dollar $ amount or a percentage %.

      Amount/Percentage  This is the amount or percent of fixed or extra tax.

Example:  in the above screen the amount of federal tax will be 10% additional while the amount of state tax will be fixed at $10.00.