Understanding Payroll Tax Setup

Before you can process payroll for employees, you must set up tax information so that employees' taxes are calculated properly. Tax amounts and some federal and state insurance amounts are calculated by a third-party software package called Quantum for Payroll Tax. Quantum for Payroll Tax is a product, made by Vertex, Inc., that integrates with the JD Edwards EnterpriseOne Payroll system. You can also use the GeoCoder, another product made by Vertex, Inc.; this program can automatically assign tax information to employees and business units.

The JD Edwards EnterpriseOne Payroll system passes information such as the tax authority, taxable wages, exemptions, and supplemental wages to Quantum for Payroll Tax, which then calculates each employee's tax. For unemployment insurance, you must set up tables that Quantum for Payroll Tax uses to calculate the appropriate taxes.