(USA) U.S. Tax Specification

To better understand how the U.S. tax options work, consider how you might define the following earnings codes:

Earnings Code	Federal Withholding Tax (FWT)	Federal Unemployment Tax (FUT)	Federal Insurance Contributions Act (FICA)
Regular	Tax	Tax	Tax
Overtime	Tax	Tax	Tax
Injury Pay	Tax	No Tax	Tax
Expense Reimbursement	No Tax	No Tax	No Tax
Disability Payment	Tax	No Tax	No Tax

Select the Subject to FWT (subject to federal withholding tax), Subject to FUT (subject to federal unemployment tax), and Subject to FICA (subject to Federal Insurance Contributions Act) check boxes (on the Earnings Table - Taxes page) for all earnings to add to the taxable gross for the specific tax. These settings enable the system to determine exactly how much of an employee's pay is subject to federal taxes.