How to Configure Federal Limit Taxes

Federal limit taxes include Social Security and Federal Unemployment Tax Act (FUTA). If you have multiple tax reporting units (TRUs) associated with your payroll statutory unit (PSU), the payroll process enforces the limits across all of them.

For example, this is a common configuration if you're using a common paymaster.

However, you can override this default and track your federal-level limit taxes by individual TRU.

Perform this configuration before your first payroll run of the calendar year.

Note:

This procedure involves configuring your Federal Income Tax calculation component. Because FIT isn't a limit tax, this won't impact your calculation of FIT. This solution was designed as a matter of convenience.

1. Start the Legal Reporting Unit Calculation Cards task from your implementation project.

2. Search for and select your TRU calculation card.

   Do this for each of your TRU cards.

3. In Calculation Card Overview, click Federal.

4. Click Federal Income Tax.

5. Click Enterable Calculation Values on Calculation Cards.

6. Click Add.

7. In Display Value, search for and select Federal Tax Limit Enforcement Level.

8. In Value, enter Tax Reporting Unit.

9. Click OK.

10. Click Save and Close.