| | Tax Rules determine which earnings are subject to specific taxes and which Pension & Cafeteria type deductions reduce specific taxes in Payroll 2.x and higher |
| Description | Many users are using Section 125 tax rules for cafeteria plans due to the taxes reduced instead of Medical Insurance and other rules. Sage cannot provide you the answer to which tax rule to use as that would be accounting advice. Your plan administrator and/or accountant would be the source to determine if your plan is a qualified Section 125 plan. |
| Resolution | [BCB:1:Backup warning:ECB]
To determine which rule might best suit your needs.
- Create an earnings code for regular wages using regular wages tax rule.
- Run a payroll for an employee with no additional amounts withheld and no deductions.
- Note the taxes calculated. Now you will know that which taxes are used for that earnings code.
- If you are trying to determine a deduction tax rule to use, select what you think best applies.
- Add that to the employee payroll entry and calculate to see which taxes it reduces.
DocLink: Payroll taxes did not calculate after running Tax Calculation
[BCB:155:Chat 100 US:ECB] |
| Defect ID | | 109011 Enhancement request completed for providing the Tax Rule Inquiry Utility in PR 2.19.0 |
| Steps to duplicate | | Select Payroll, Setup, Earnings Code Maintenance.
Select Lookup on Tax Rules.
Unable to determine from description which tax rule to use in some situations.
Need to know what taxes will be applied for each rule for Federal, State, Local.
Legacy provided access to this information. |
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