The "Tax Info" tab is where you can set up an employee's payroll withholdings i.e. Federal, State, and Local taxes, allowances, etc. Taxes may be one of the guarantees of life, but that doesn’t mean they have to be difficult.
For each employee you must enter the Federal and State taxes. If your area has local taxes (city, school district, etc), you have the option of paying them through Wagepoint. Please note, if your local taxes are typically handled through payment books sent directly to the employees by the local tax authority, you do not have to apply those taxes in Wagepoint.
- Select "Employee" from the top group of tabs. The page will default to display the "Active" Employee tab.
- You will land on " The Person" tab when you click the name of the employee or the edit (gear wheel) icon. From there highlight the "Tax Info" tab and select "Federal Tax US" from the drop-down menu to set up the payroll withholdings.
The federal tax information is the information found on the employee W-4 form. Fill out the whole form. Filing status, allowances, additional withholding amounts (defaults $0.00 dollars per pay), FICA Status and FUTA Exemptions are all required for each employee.
- Fed Tax Override is if your employee wants to set a value to be withheld rather than have the system calculate the tax. For example; the employee wants to always pay $500 or 20% of their income, they can override the default calculation and go with that amount.
- The FICA Status and FUTA Exemptions default to the most common options – each employee is subject to FICA (Social Security tax and Medicare tax) and is not exempt from FUTA. FUTA is Federal Unemployment Tax Act. This is an employer tax.
- Click "Save Changes" and all the Federal Tax related information for this employee has now been saved in the system.