Human Resources>File>Percentage Tax Rates
Applicable tax rates and G/L account withholding numbers should be set here. FICA taxes are based on a percentage; federal taxes are based on a table already entered in the system and state taxes may be calculated on a percentage or table method. Both employee and employer contributions to FICA, FUTA, (CPP and EI for Canada) and state (Province) unemployment rates may be adjusted through this screen. These rates can be adjusted as often as necessary to keep up with the changing tax laws. Any adjustments made will be reflected on all subsequent pay processing.
Tax Year
This should be the current year for payroll processing. This is automatically changed by running the annual RFMS update which contains the new payroll tax figures.
Federal
FICA Account
All FICA withholding amounts in Human Resources will be credited to this account. This is a Current Liability account.
Medicare
All Medicare withholding amounts in Human Resources will be credited to this account. This is a Current Liability account.
FUTA Account
All FUTA withholding amounts in Human Resources will be credited to this account. At present the employee does not have to contribute to this account, but the RFMS Human Resources system has built in the ability to handle such if it is ever required. Create an account code to accommodate this feature if not already created. Since this code is representative of the amount withheld from the employee, it would be a Current Liability account.
For each enter:
Account
Enter the withholding account for each tax designation.
Sub Account
Enter as desired
Cycle
Per Pay Cycle/ Per Year/ Per Hour
Indicate the time frame in which the limits for withholding this tax apply.
Gross to Use
Select the base (Gross/Federal/FICA) on which this tax rate will be calculated.
Employee Rate & Limit
Enter the applicable EMPLOYEE rate level and limit for this tax. These numbers will be supplied with the annual payroll update.
Employer Rate & Limit
Enter the applicable EMPLOYER rate level and limit for this tax. These numbers will be supplied with the annual payroll update.
State
An unlimited number of states are available. Click the insert button to add a record. Information entered here will apply to all employees.
Number
This is the numeric indicator for this tax
Type
State Tax or Withholding
Withholding will pull information from the tables updated with the annual payroll update; designate the account code information here. Each state listed for an employee in worker information will automatically be listed here.
Description Examples
State Withholding
All state withholding amounts in Human Resources will be credited to this account. This is a Current Liability Account. It is recommended to have a different account code for each state.
State Unemployment
All state unemployment amounts withheld in Human Resources will be credited to this account. This is a Current Liability account.
State Disability
All state disability amounts in Human Resources will be credited to this account. This is a Current Liability account.
For each enter:
Account
Enter the withholding account for each tax designation.
Sub Account
Enter as needed
Cycle
Per Pay Cycle/ Per Year/ Per Hour
Indicate the time frame in which the limits for withholding this tax apply.
Gross to Use
Select the base on which this tax rate will be calculated.
Employee Rate & Limit
Enter the applicable EMPLOYEE rate level and limit for this tax.
Employer Rate & Limit
Enter the applicable EMPLOYER rate level and limit for this tax.
Multi-State Information
Notice state tax information is entered in the space provided. All state information needed is entered from this screen. In addition, notice that any new state tax information added under a worker will display on this screen and any information added on this screen will be accessible when adding state tax information on a worker record. Click the Insert button to add this global deduction.
This information will now display on the Percentage Tax screen.
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