Payroll paycode setup – Subject to tax

  • Payroll paycode setup – Subject to tax

    Posted by DSC Communities on March 28, 2017 at 1:47 pm
    • Diego Zabala


      March 28, 2017 at 1:47 PM

      We are doing a review of our current payroll tax configuration, and the following inquiry came from the Payroll director regarding functionality, I’m not sure on the answer.

      It is my understanding that once you select one of the tax types this makes the paycode as “taxable”. On a pay code set up each tax type has a field for subject.  Does this mean the earnings is subject to that tax type or does it mean the system will withhold that tax type?

      Thank you!

      Diego Zabala
      Boca Raton FL

    • Tom Franz, CPP


      March 28, 2017 at 2:18 PM


      By marking one or more of the “Subject to” tax checkboxes, the system will consider wages for those codes as taxable for the corresponding type of tax. Whether or not the related tax will be withheld is based on a variety of factors (e.g. tax-sheltered deduction amounts). Hope this helps clarify your question. Have a great day!

      Tom Franz, CPP
      Client Engagement Manager
      Integrity Data
      Lincoln IL

    DSC Communities replied 6 years, 6 months ago 1 Member · 0 Replies
  • 0 Replies

Sorry, there were no replies found.

Welcome to our new site!

Here you will find a wealth of information created for people  that are on a mission to redefine business models with cloud techinologies, AI, automation, low code / no code applications, data, security & more to compete in the Acceleration Economy!