Employee Tax Settings (New UI) - 501c Exempt FICA, FUTA, & CA SDI

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  1. From the Dashboard, select Employee Changes > Other Employee Information mceclip0.png
  2. Select image2.jpg  to open the Employee’s profile for changes
  3. Select the 'Payroll' tab, then click the "Jump To" option for Tax Information on the left  mceclip1.png
  4. Within the ‘Tax Information’ widget, click on either Federal or State, depending on the withholding you want to update mceclip2.png
  5. To Update FEDERAL Tax Settings, Select the mceclip3.pngoption on the far right to enter a new record. This will add another row to enter the new withholding information mceclip5.png
      1. Enter a Date From (or start date) of the current check date 
          1. This date field can change historical pay statements “Tax Allowance Settings” section, that is why the date needs to be the current check date
      2. In the Form 2020 W4 field, select if a 2020 or later W4 form was completed
          1. If "Yes" is selected, the options for Filing Status, Two Jobs, Claim Dependent, Deduction, and Other Income become available. These settings follow Step 1, 2, 3, and 4 of the 2020 and later W4 form. Enter what the employee has elected on the form or if the entire form is blank, all fields can be left blank                  2021-01-13_09h33_53.png                                                                                                                         2021-01-13_09h39_43.png
        1. If "No" is selected, the options for Filing Status and # of Allowances will be available. These setting follow Box 3 & 5 of the 2019 and prior W4 form. If the form is blank in Box 5, enter 0 allowances                              2021-01-13_09h33_46.png    2021-01-13_09h40_35.png
      3. In the Additional Withholding field you can enter an additional amount ($) or percent (%) to withhold for Federal Income Tax on top of the employees' filing status elections
      4. In the Override Amount field you can enter an amount ($) or percent (%) to withhold for Federal Income Tax to only deduct that $ or % and ignore the employees' filing status elections
      5. If an employee has requested to be “Exempt” on Line 7 of their W4:
          1. 2019 and prior, change the # Of Allowances to ‘99’. 
          2. 2020 and above, update EE Withhold dropdown to 'Block W/H'. If you do not have access, please send in a request to your CSR. (Do NOT use ‘Exempt’, as this causes the employee's wages to be excluded from their W-2.)                 mceclip7.png
      6. Select 'Add' to update the Federal tax settings
      7. You will need to review the Tax Jurisdiction settings to ensure OASDI and FUTA are marked as 'Exempt' due to your 501(c) status
          1. After saving the new Federal Income Tax settings, select the Actions icon 2021-01-12_15h51_06.pngon the right then click 'View Tax Jurisdictions'  mceclip0.png
          2. Ensure ONLY the OASDI (FICA) and Federal Unemployment Tax (FUTA) EE Withhold dropdown are set to 'Exempt'. If not, these will need to be updated mceclip0.png  
          3. Click image6.jpg
  6. To update STATE Tax Settings, select the Actions icon 2021-01-12_15h51_06.pngon the right then click 'Edit' mceclip6.png                                  2021-01-13_10h00_25.png 
        1. Within the sub window, select mceclip7.png  next to Filing Status if there is a change to the setting to add a new record and enter the Effective Date as the current check date
            1. Do NOT just update the current Filing Status as this field can change historical pay statements “Tax Allowance Settings” section
                1. Please contact your CSR if you need to make changes to any additional State taxes, as changes will affect the W-2’s!!
            2. Update the Number of Allowances if there is a change to the setting
            3. Select image6.jpg
        2. You will need to review the Tax Jurisdiction settings to ensure CA SUTA is marked as 'Block W/H' and CA SDI is marked as 'Exempt' due to your 501(c) and SUTA Reimburser status. Select the Actions icon 2021-01-12_15h51_06.pngon the right then click 'View Tax Jurisdictions'  mceclip2.png
        3. Ensure the ER SUTA CALIFORNIA (SUTA) and CA ETT (SUTA_SC) ER Withhold dropdowns are set to "Block W/H". If not, these will need to be updated  mceclip1.png
        4. Ensure the California SDI (SDI) EE Withhold dropdown is set to ‘Exempt’. If not, this will need to be updated                                                    mceclip2.png
              1. Due to SDI being exempt, you will need to manually update the EE's Wage Plan Code needs to display a "P", meaning apply Personal Income Tax (PIT) only                  mceclip0.png
        5. Select image6.jpg