How can I enter my local 1% payroll tax?

Question

I am using the trial version to evaluate the payroll product. I selected local tax deduction check mark but it does not deduct local tax also there is no place where I can enter my local 1% tax. Can you tell me how it is done?

Answer 1

Thank you for evaluating Payroll Mate software.

In order to properly create a 1% local payroll tax, please make sure to follow these simple steps:

1. Navigate to the Tax Categories tab, under the company setup screen.
2. Click the Add button to create a new custom tax.
3. In the dialog box that comes up make sure to populate all fields with proper values. The Calculation Type must be set to Percentage, the Quarterly Rates need to be 1.0 (since you want 1%) and make sure to check the box that says Use on Box 19 (Local Income Tax).
4. Very important note: If you custom added any income categories make sure you go back and check if this new local tax applies to those income categories (you do this under the Income Categories tax in the Company screen).
5. Go to the New/ Modify employee wizard and make sure to check the box for the new local tax under the Taxes screen.
6. Now when you create a new check, the local tax will be calculated.

 

Real Business Solutions Support Team, Makers of W2 Mate and Payroll Mate

 

http://www.realtaxtools.com/

support@realtaxtools.com

708-479-8731