Entering Tax Withholding and Override Information

Access the Employee Tax Overrides form.

The first record in the detail area is the Federal A tax type. Use it to specify tax exemptions and overrides for federal income tax. The system uses exemptions that you enter into this record for all state and local authorities for which there is no specific entry lower in the detail area. However, the override amounts do not carry forward.

Employee No

Enter a number that identifies an entry in the JD Edwards EnterpriseOne Address Book system, such as employee, applicant, participant, customer, supplier, tenant, or location.

Additional Overrides

Select the Additional Overrides option to access the Additional Tax Overrides form.

Fe Ex (federal exemptions)

Enter a number that specifies the total exemptions an employee claims on the federal IRS Form W-4 tax withholding form. If you leave this field blank, the system uses zero exemptions. Unless you enter separate numbers for state and local tax areas, the system also uses the number of federal exemptions to calculate state and local taxes. Special conditions exist for these tax jurisdictions:

Arizona: 8 (0%), 9 (10%), 10 (18%), 11 (21%), 12 (23%), 13 (29%), 14 (34%), 15 (percentage based on annual gross). The number of exemptions is indicated first, followed by the tax percentage.

Arkansas: 16 or fewer exemptions, use the low income tax table; 17 or more exemptions, use the regular tax table.

For the specific payroll tax requirements for Arizona and Arkansas, refer to the Quantum documentation.

Additional Federal Withholding

Enter an additional amount to be withheld over and above the calculated withholding.

This could represent a flat withholding amount in situations in which the employee elects to completely bypass the calculated amount. The authority to which each element relates is determined by the tier code of the tax authority. Whether the amount is to be an additional amount or a flat withholding is specified in the employee's master file record.

F T (flat tax)

Enter a code that represents the method in which the additional tax is calculated. The code that you enter in this field indicates the function that is performed by the value that you enter in the Additional Federal Withholding field. Values are:

%: A percentage that replaces the tax rate from the tax table.

A: An amount that is added to the tax computed from the tax table.

D: A discretionary amount that is added to the tax computed from the tax table. This amount is not added if the wages are insufficient to cover it. (Release 9.2 Update)

E: Exempted tax amount that allows you to have tax and taxable gross amounts as zero. You cannot use this tax type for the tax type Federal A. (Release 9.2 Update)

F: An amount that replaces the tax computed from the tax table.

E O (employee cash option)

Enter a value to override the 125 cash option at the company level. Enter 1 in this field to indicate that the employee is taking a cash option. This field can only be used with SUI and SDI taxes (G, H, I, and J).

Tax Area Overridden

Enter a code identifying a geographical location and the tax authorities therein.

Authorities include both employee and employer statutory requirements.

Refer to the Quantum for Payroll Tax System's Master GEO Code List for values for your locations. This tax area code is used for overriding all tax types at the Employee Master level.

Tax Type

Enter a code that specifies the type of payroll tax being processed. This is a UDC (system 0, type /TX). To set up state minimum wage amounts, you must enter MW in this field. To do so, you must first add MW to the UDC table. However, you should not change the codes and definitions that are provided with the software.

Tx Cr (tax credit)

Enter a code that specifies the withholding table that the system uses for the state of New Jersey. Values are:

0: Table selection is based on filing status.

1: Table A.

2: Table B.

3: Table C.

4: Table D.

5: Table E.

If secondary credits are used in any other state, enter one of these values with the appropriate state tax area and F for the tax type.

The following options are enabled as part of the Employee's Withholding Allowance W-4 Form updates for the year 2020 and later.

Multiple Job Flag

The flag when set indicates that only two jobs exist for the employee.

This option is applicable for jobs with similar pay. If the option is not set, and is populated with the default value 1, excess tax may be withheld than necessary.

Claim Dependent 1

Enter the amount generated by multiplying the number of qualifying children under the age of 17 by $2,000.

Claim dependent 2

Enter the amount generated by multiplying the number of dependents who are not qualifying children under the age of 17 by $500.

Total Claim Dependent

Enter the total amount in the Claim Dependents section.

Other income

Enter the other income. This amount is entered for a year for which an employee does not expect any withholding on income.

Deductions

Enter the deductions.

Deductions an employee expects other than the standard deduction in a year.

W-4 Revision Year

Represents the W-4 revision Year.

If you set system options to track requisition information, the system displays the Employee Assignment form. Use the Employee Assignment form to update position and requisition information when you add an employee or change an employee job.