Note:

• After setting up a new formula for the field, there still needs to be a field setup so the deduction shows on the stub. Refer to Article ID 66196 "DocLink: How can I create a tax formula based on a rate per hour?" in Related Resources for more information.
• Section I & II consists of a formula with the rate variable entered in the Additional Withholding column for the Special 1 field of the Maintain Employee/Sales Reps window

Section I: Salaried employees

1. In Sage 50—U.S. Edition, select File, Payroll Formulas, and then select User-Maintained.
2. In the Formula ID field, enter an ID to represent the tax (for example TTLHRSS).
3. In the Name field, enter a formula name in the format of ID YEAR (for example TTLHRSS 21, where 21 is the current payroll tax year (2021))
4. In the Effect on Gross Pay field, the assumption is that this is a tax that Subtracts from gross.
5. In the Filing status field, select All.
6. In the How do you classify this formula? field, select Tax.
7. In the Tax agency field, select State.
8. In the Select a state field, select your state from the list.
9. Clear Use this formula as a filter on the Payroll Tax Report box.
10. In the Formula box, enter one of the following formulas, adding the comment is optional.

Note: "The following formula represents a state tax for SALARIED employees. It multiplies 80 hours (salary for a bi-weekly payroll) by the employee's total contribution rate to compute the tax for the current payroll period. Each employee's contribution rate is entered (in cents per hour) in the Additional Withholding column for the Special 1 field of the Maintain Employee/Sales Reps window."

• Biweekly Formula: ANSWER=-80*EMP_SPECIAL1_NUMBER/100
• Weekly formula: ANSWER=-40*EMP_SPECIAL1_NUMBER/100
• Semi-monthly formula: ANSWER=-88*EMP_SPECIAL1_NUMBER/100

Section II: Hourly employees

1. In Sage 50, select File, Payroll Formulas, and then select User-Maintained.
2. In the Formula ID field, enter an ID to represent the tax (for example TTLHRSS).
3. In the Name field, enter a formula name in the format of ID YEAR (for example TTLHRSS 21, where 21 is the current payroll tax year (2021)).
4. In the Effect on Gross Pay field, the assumption is that this is a tax that Subtracts from gross.
5. In the Filing status field, select All.
6. In the How do you classify this formula? field, select Tax.
7. In the Tax agency field, select State.
8. In the Select a state field, select your state from the list.
9. Clear Use this formula as a filter on the Payroll Tax Report box.
10. In the Formula box, enter the following formula example. Adding the comment is optional. If you have additional pay types that need to be taxed, you will need to add those to your formula.

Note: "The following formula represents the Washington Industrial Insurance Tax for HOURLY employees. It adds up the total number of hours worked for the current payroll period and multiplies it by the employee's total contribution rate to compute the tax for the current payroll period. Each employee's contribution rate is entered (in cents per hour) in the Additional Withholding column for the Special 1 field of the Maintain Employee/Sales Reps window."

• ANSWER=-(REGULAR+OVERTIME)*EMP_SPECIAL1_NUMBER/100

Note: The WA Labor Industrial rate may be defined out to five decimal places. In such cases, the rate and formula will need to be adjusted appropriately. Example: If an employee's rate is 0.13451 cents per hour, enter 134.51 in the Special 1 Field and add a zero to the end of the formula above to move the decimal place.

Another sample formula:

The formula encloses the pay level field names in parentheses, which are used for your hourly-based employees. In this instance, we have REGULAR and OVERTIME pay levels setup in the example we are using:

• A=2;
• ANSWER=-(Regular+Overtime)*A. This formula will multiply Total Hours worked by $2.