[Diego Zabala]

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!

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Diego Zabala
Boca Raton FL
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[Tom Franz, CPP]

Diego,

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!

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Tom Franz, CPP
Client Engagement Manager
Integrity Data
Lincoln IL
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