- Click Tax Types from Payroll module.
- If there are no tax types yet, new Tax Types screen will be displayed directly. Otherwise, a list of existing tax types will be displayed.
- Click New toolbar button.
- Set the value for the following fields:
- Tax ID
- Calculation Type
- Description
Amount
i. This field is disabled when the Calculation Type is:
>> USA Federal Tax, USA Social Security, USA Medicare, USA State Disability, USA State and USA Local
ii. This field is enabled when the Calculation Type is:
>> Fixed Amount and Hourly Amount
iii. This field is renamed to "Percent" when the Calculation Type is:
>> FUTA, SUTA, Percent and Hourly Percent
Limit
This field is enabled when the Calculation Type is:
>> USA FUTA, USA SUTA, Fixed Amount, Percent, Hourly Amount, Hourly Percent
- Paid By
- Account ID
Expense ID
Account ID should only display Liability Accounts while Expense ID should only display Expense Accounts
- State
County
i. State field is enabled when the Calculation Type is:
>> USA State Disability, USA State and USA Local
ii. County field is enabled when the Calculation Type is:
>> USA Local
Vendor ID
Vendor ID should only display Vendor Accounts.
This field is needed if the tax or deduction will be used for creating payables or vouchers.
- Click Save toolbar button to create tax type.
- Newly created tax type should appear in the grid.