Tax Info - State Taxes | Wagepoint

Tax Info - State Taxes

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.

  1. Select "Employee" from the top group of tabs. The page will default to display the "Active" Employee tab.
  2. 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 "State Tax US" from the drop-down menu to set up the payroll withholdings.
  3. The state tax information typically matches the IRS W-4but includes state specific taxes as well. The first option of the state tax is the Resident State. This option will compare the state of the employees address with the state of the company address. If they are the same, it will specify, otherwise it will specify the difference. This is important when calculating state taxes, particularly State Unemployment Tax (SUT) Tax.

  4. If an employee wants any additional state withholdings, they can be specified as a dollar amount or a percentage of the gross pay. The default is $0.00. 

  5. State 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 $100 or 10% of their income, they can override the default calculation and go with that amount.

  6. The SUT Exempt is set to "No" by default. For the State Disability Insurance, the default is "Not Applicable". If your state requires Disability Insurance, you can choose the appropriate setting from the SDI Status list.

  7. Finally, there is UI Jurisdiction State. This option defaults to the state where the company is located, but if you have more than one location, choose the appropriate state where the employee is working.

  8. Click "Save Changes" and all the State Tax related information for this employee has now been saved in the system.