Payroll Tax Payees

<< Click to Display Table of Contents >>

Navigation:  MLS 2026 Fully Integrated Accounting > Payroll > Payroll System Setup/Utilities >

Payroll Tax Payees

 

FiPayTaxPayee

 

MLS 2026 allows payroll tax payments to be processed directly through the system.

To properly prepare payroll tax checks:

👉 the system must know the official payee names

for the agencies receiving the funds.

This utility screen is used to enter:

Federal tax payment payees

State tax payment payees

SUTA payment agencies

These names are then used automatically when payroll tax payments are processed.


Purpose of This Setup

Payroll taxes are commonly paid to several different agencies, including:

the Internal Revenue Service (IRS)

state tax agencies

state unemployment agencies

Rather than requiring the operator to type the information repeatedly:

👉 MLS 2026 stores the payment payee names in advance.

This helps:

simplify payroll processing

reduce typing errors

improve consistency on printed checks and reports


Federal Tax Payee

Enter the official name of the:

👉 federal payroll tax agency

This is commonly:

Internal Revenue Service

or

IRS

depending on your company preference and payment requirements.


State Tax Payee

Enter the official name of the:

👉 state payroll tax agency

Examples may include:

Franchise Tax Board

Department of Revenue

State Tax Commission

The correct name depends on:

your state

local payroll regulations


SUTA Payee

Enter the official name of the:

👉 State Unemployment Tax Agency

This may differ from:

the regular state payroll tax agency

depending on how your state administers unemployment taxes.


Saving the Information

After entering or modifying the agency names:

👉 press the Accept button

to permanently save the values.

⚠️ If the information is not accepted and saved:

the changes will not be retained by the system.


Why Accurate Payee Names Matter

Correct payee information helps ensure:

payroll tax checks are prepared properly

agency payments are processed correctly

accounting records remain organized

year-end reporting is simplified

Incorrect names may cause:

delayed processing

rejected payments

accounting confusion

payroll compliance issues


Recommended Best Practices

When setting up payroll tax payees:

Use official agency names

Verify names against payment coupons or agency notices

Review agency names annually

Update names if agencies reorganize or change titles

Keep printed payroll tax reports for reference


Recommended Companion Sections

This section works closely with:

Federal Payroll Tax Data Setup

State Payroll Tax Data Setup

Payroll Processing

Payroll Tax Reports

Payroll Troubleshooting

Together, these sections provide a complete payroll tax setup and payment workflow within MLS 2026.