Solution Properties
Solution ID:
223924350033218
Last Modified Date:
Tue Aug 17 19:47:41 UTC 2021
Taxonomy Path:
Category//Transactions
Author:
[email protected]
How do I verify that Payroll taxes are calculated correctly?
Description
Additional Information can be found at the following sites:
Cause

I want to verify that the taxes which calculated are accurate.

I want to see the amounts which will calculate if I decide to change my filing status or exemptions. Refer to the following tool below if for example an employee's Federal Withholding (FWH) does not calculate after processing, due to the gross amount for the week being too low when verified with their filing status and number of exemptions.

Resolution

Gather employee information to enter into the tax calculator:

  1. Go to Setup, Employees.
  2. On the General tab, note the Pay Group.
  3. Go to the Entry Info tab.
  4. Note the following: W-4 information, Filing Status, and Exemptions.
  5. If troubleshooting State taxes, click State, select the state, and note the state Filing Status, Exemptions and Misc Tax Codes.
  6. Go to Setup, Pay Groups and note the Pay Frequency from the Pay Group on the employee setup.

Use the Tax Calculator to verify tax amounts:

  1. Click Tools, Tax calculator.
  2. Enter the W-4 and state information gathered above.
  3. Select a Frequency.
  4. Enter the State.
  5. Enter the Taxable amount.
  6. Click Calculate Taxes.

Note: If you do not have a new payroll transaction file, you'll receive a warning that "The PR New Transaction file was not found. The file will be created." Select the OK button. A new.prt file will be created and you will be able to use the Tax Calculator.

Steps to duplicate
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