Calculating the Payroll Taxes

The Calculate Payroll Taxes option automatically calculates all payroll taxes for the user's current timecard batch based on a combination of the state codes for each transaction, individual withholding information, and tax rates and cutoff limits as set up through the Payroll > Properties option.  

The screen will display the current setting for the Payroll Period.  This display is useful for companies that have to run multiple types of payroll, such as weekly for field employees and bi-weekly for office staff.  The payroll period may only be changed in the Payroll > Properties screen.  

Select OK to begin the tax calculations. When calculating taxes for multi-state payroll where an employee is set up for one state on State Withholding and for a different state for State Unemployment, if the Unemployment State was not set up as an additional state on the employee’s file, an error message will be generated and will identifying the employee along with the state code that is causing the error.  

Upon completion of the tax calculations, the system will return to AccuBuild's main menu. The Calculate Payroll Taxes option will now appear dimmed and the Print Paychecks option will be enabled.  Taxes may be re-calculated if corrections or additions to the timecard batch file have been made.

Override Payroll Tax Calculation Screen

If an employee has the Override Automatic Tax Calculation option enabled in the employee's file, then the system will display the tax information for the employee on a state by state basis. The Override Payroll Tax Calculations screen allows you to change the number of pay periods per year and/or change the tax amounts as well as the 'subject to' wage amounts for all of the federal and state taxes. The operator should use EXTREME CAUTION when using this feature of the software, as any changes to these taxes will affect the payroll check register and the quarterly payroll tax reports.

Payroll Deduction Override Screen

If the system encounters an employee that has been set up with a percentage of disposable wage deduction, then the system will display the Payroll Deduction Override screen. If an employee has any percentage of disposable wage deductions set up in the employee's file, AccuBuild will display the deduction information on a state by state basis, and allow the deduction amount to be adjusted. Each deduction is handled in order by the accumulator, and as the deduction amount is changed, the net amount of the check will be recalculated. Keep in mind that each accumulator can contain multiple local deduction codes, and each local deduction amount will be displayed as each accumulator is selected.

Once the override screen is displayed, the current deduction amount will be displayed based on the percentage calculation. The override screen will recap all of the pay and deduction amounts along with the proposed net pay amount in the top right-hand side of the screen. Review the deduction amount and net pay amount to make sure the amounts are acceptable. Make any changes to the deduction amount if required, and click the Save button to record the deduction amount. If the deduction amount has been changed, then the proposed net pay amount will be adjusted and displayed on the screen. Click on the Close button to exit the screen and continue with the tax calculation process.