Taxation

These processing options specify the mode in which to run the Tax History Integrity report, whether the system deletes certain information, and which error types the system displays on the report. You can also enter information that might vary from year to year, such as the tax rate and limit for Social Security.

1. Processing Mode

Specify whether you want to process the report in proof mode or update mode. Values are:

0: Proof mode. The system prints a report without updating the history tables. Use the report to review errors and to determine the information that you need to correct manually before you run the report in update mode.

1: Update mode. The system prints a report and updates the summary history table with the corrected information. Use this mode after you have reviewed and corrected all errors that you can correct manually.

2. Tax History Records

Specify whether you want the system to delete the records in the Tax History table for which the company, tax area, and tax type have no corresponding records in the Corporate Tax ID table. In some situations, these records are valid and should not be deleted. For example, if you are waiting to receive a corporate tax ID from the government, you might have entered applied for in the Corporate Tax ID table. In this case, you would not want to delete the tax history records, even though they do not correspond to the records in the Corporate Tax ID table.

Caution: Deleting tax history records can cause significant loss of information that you might need for year-end processing. Before you set this processing option to 1, contact technical support for assistance.

3. Annual Wage Limit for Social Security

Specify a numeric value that represents the amount of wages on which employees must pay Social Security tax. For example, if the annual wage limit is 77,000 USD, employees pay Social Security tax until their wages for the year reach 77,000. After employees' wages reach the wage limit amount, any additional wages that they earn that year are free from Social Security tax. The annual wage limit might vary from year to year.

4. Tax Rate for (Employee Paid) Social Security

Specify a numeric value that represents the percentage of wages that employees must pay in Social Security tax for the current year. For example, if the Social Security tax rate is 4.2 percent, enter 4.2 in this processing option.

5. Tax Rate for (Employer Paid) Social Security

Specify a numeric value that represents the percentage of wages that employers must pay in Social Security tax for the current year. For example, if the Social Security tax rate is 6.2 percent, enter 6.2 in this processing option.

6. Tax Rate for (Employee Paid) Medicare

Specify a numeric value that represents the percentage of wages that employees must pay in Medicare tax for the current year. For example, if the Medicare tax rate is 1.45 percent, enter 1.45 in this processing option.

7. Tax Rate for (Employer Paid) Medicare

Specify a numeric value that represents the percentage of wages that employers must pay in Medicare tax for the current year. For example, if the Medicare tax rate is 1.45 percent, enter 1.45 in this processing option.

8. Tax Rate for additional (Employee Paid) Medicare

Specify a numeric value that represents the increased percentage of wages that employees must pay in Medicare tax for the current year. This is only applicable if the employee's wage earned is over the specified limit. For example, if the Additional Medicare Tax rate is 2.35 percent, enter 2.35 in this processing option.

9. Error Codes to Omit

Specify the error codes that you do not want to print on the report. To print all error codes, leave all fields for this processing option blank. Enter 4 digits for each error code that you want to omit. Use leading zeros for codes that are less than 4 digits, for example, 0101. For a list of valid error codes, see UDC 06/IX.