Federal tax data

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Taxpayer ID Numbers

The federal and state taxpayer ID numbers are required on many  reports and forms.  Once this option is selected, you may view, and  then edit, each number.  Be sure that the entries are correct.  This screen is also used for the state identification.  Enter the  standard two letter designator for the state table to be used, ie.  CA for California.

 

EMS-0025

 

F.I.C.A.

When FICA is selected, the system will display two sets of boxes.  Each permits the entry of the employee, and employer, percentage of  contribution, and the earnings limit for deductions.  The left  column of boxes is for social security, while the right set is for  medicare.  Please note that these rates are different.

 

EMS-0026

 

The system  is set for the year when the software is first shipped.  Updates to  the files may be made by the operator, in accordance with Schedule  E of the Federal Tax Guidelines.

 

F.U.T.A.

At the present time, FUTA is paid by the employer.  The system will  display current values for the percentage of contribution, and the  earnings limit.  These may be updated by the operator at the  beginning of each year in accordance with the values in Circular E,  the Federal Employer's Tax Guide.

 

EMS-0027

 

Federal Standard Deductions

The standard deduction is the amount subtracted from gross earnings  of an employee for their pay period, prior to calculating the tax  liability.  The amounts are found in the Circular E, titled  Percentage Method Income Tax Withholding Table.

 

EMS-0028

 

The fields  displayed on the screen ask for payroll periods which are  weekly, bi-weekly, semi-monthly, or monthly.  Enter the amount which  is found in that table, which is the amount for each withholding  allowance.  The system multiplies this amount by the number of federal  deductions for the employee, and then subtracts the result from the  gross pay, to arrive at a taxable obligation.