Employee - Employee window

Federal Tax tab

This tab allows you to block or exempt federal taxes.

• Overriding Employee Federal Taxes.

• The taxes you exempt or override on this tab will affect every check issued to this employee. You can override taxes on individual checks during payroll entry, but you cannot override taxes that are exempted or blocked at this level. You can override only taxes that are calculated for the check. Therefore, if you regularly block an employee’s taxes, but not always, it may be better to set them up with the Single – 99 status. Statuses can now be changed only as of the effective (as of) date.

Override Federal Tax Type

Override Federal Tax Value

If an Override Tax Type is entered, you are required to enter an Override Tax Value before saving.

EE Federal

EE OASDI Exempt

EE Medicare Exempt

ER OASDI Exempt

ER Medicare Exempt

ER FUI Exempt

EIC

Based on the W-5 Earned Income Credit Advance Payment Certificate (W-5) form, select the appropriate status if this employee is eligible for the Earned Income Credit.

FUI Rate Credit Override

When set to zero, payroll calculates at the FUI rate of 6.2% for this individual Employee instead of .8%. This would be used in a case when the owner is SUI exempt but the rest of the employees are not. The FUI rate for the owner should be calculated at the higher rate of 6.2%.