The following steps will explain in detail how to add a new Tax Group...
1.First open the Tax Groups form and then click the New button to clear the form so you can enter a new record. The cursor will be flashing at the top of the form in the Tax Group field.
2.You must assign a unique Tax Group for each Tax Group, which can be up to 15 alphanumeric characters in length. For example: Illinois State Tax Group might be referenced as 'ILL01'. When you have finished entering data for each field, press the TAB or ENTER key to move your cursor to the next field.
3.You can then enter a Description for the Tax Group. This description will be seen next to the Tax Group in all the Tax Group combo boxes throughout the program.
4.You can click the Add button next to the Employee Taxes Tab box and add one or more tax types for this Tax Group.
5.When you click the Add button the Add Tax Types form will open. This form will list all the Tax Types that are available to add to the Employee Taxes List box. If you do not see a particular tax type you want to use, make sure it has already been created in the Tax Types form. You will not be able to select the same tax type more than once, so if it is already in the Tax List box it will not appear in the Add Tax Types form. Employee Taxes are typically referenced with (E) after the tax name. That will identify that this specific tax is for the Employee.
6.In the Add Taxes form use your mouse to click on all the tax types you want to add to the Employee Taxes tab. There is also a Select All button at the top of this form to quickly select all the taxes, for your convenience. When you have selected all the tax types you want to add, click the OK button. The Add Tax Type form will close and all the tax types you selected will be added to the Employee Taxes box for this Group Tax. Highlight on a Tax and glance to the right in the Tax Information area and you will view all the fields of information are exactly like what was setup in the Tax Types form.
7.To remove a tax type that you added refer to the Deleting Employee Taxes topic.
8.The next step is to click the Add button next to the Company Taxes Tab box and add one or more tax types for this Tax Group.
9.When you click the Add button the Add Tax Types form will open. This form will list all the Tax Types that are available to add to the Company Taxes List box. If you do not see a particular tax type you want to use, make sure it has already been created in the Tax Types form. You will not be able to select the same tax type more than once, so if it is already in the Tax List box it will not appear in the Add Tax Types form. Company Taxes are typically referenced with (C) after the tax name. That will identify this specific tax is for the Company.
10.In the Add Tax Types form use your mouse to click on all the tax types you want to add to the Company Taxes tab. There is also a Select All button at the top of this form to quickly select all the taxes, for your convenience. When you have selected all the tax types you want to add, click the OK button. The Add Tax Types form will close and all the tax types you selected will be added to the Company Taxes box for this Group Tax. Highlight on a Tax and glance to the right in the Tax Information area and you will view all the fields of information are exactly like what was setup in the Tax Types form.
You can edit any of the fields for the selected Tax Types in this area.
1.The Tax ID field is read only and displays the Tax ID that is selected in the Tax List box.
2.In the Description field you can modify the default description for the selected tax type.
3.The Calculation Type combo box is the method or amount used to determine the amount of the tax. You must enter a value in this field for each tax type. There are choices, which are described below.
System: This calculation type cannot be used when adding new tax types. It is used only for default system taxes like Federal and FICA.
Fixed Amount: Allows an actual non-calculated amount to be entered for the tax.
Hourly Amount: Allows an amount to be entered for the tax that is based on the hours worked.
Hourly Percent: Allows a percentage for the tax to be calculated based on the hours worked.
Percent: Allows a percentage for the tax to be calculated on the gross paycheck.
State: Allows a selected state tax to be calculated.
4.The Paid By field will indicate if this is an Employee tax or a Company tax.
5.Based on the Calculation Type selected, you will either see a field named Amount, Percent, County and State. If the Calculation Type is a Fixed Amount then the Amount field will be displayed. Enter the actual amount you want the tax to be. If the Calculation Type is Percent then enter the percent you want the tax to be calculated on. If you selected County in the Calculation type field, you will be able to select or enter they county that the tax is applicable for. If the Calculation Type is State then enter the State Name you want the tax to be calculated on.
6.Enter the maximum annual amount that can be taxed for a tax type in the Limit field. If there is no limit then enter zero in this field.
7.The Active check box can be used to make a tax type active or inactive. When the Active check box is deselected, the tax type will in effect be disabled and you will not be able to use it.
8.Enter the Account ID you want to use by selecting it from the combo box. Normally tax types are setup as liability accounts.
9.Enter the Expense ID for the tax type in this field. View a list of Accounts by selecting the down arrow.