Purpose: Federal and State tax information is required for payroll. This help guide will show you how to add or update your tax information.
- Collect tax monies when payroll is processed.
- Liabilities are scheduled and paid daily for withholding tax based on the pay frequency the client puts in the Company Tax tab.
- Quarter End Filings for Withholding and Unemployment Insurance and additional payments are made throughout the month following the quarter end.
Account numbers, tax rates, and pay frequencies are assigned to companies by the IRS and states. Federal and State tax account numbers and rates need to be entered on the Company Tax tab. Please note that you are responsible for verifying TAX ID’s, Pay Frequencies, and Rates are correct.
Simply click “Add Tax” and select when you’d like the tax to be effective.
- Start Date - This is automatically entered from when you click to add the tax. However, you can manually change the date here.
- End Date - Enter a date here if you need to end the Tax.
- State - Select which state the tax applies to, or select “Federal” if it is a Federal tax.
Tax ID - Enter the account number assigned by the state.
- Waiting for Tax ID - If you don’t have an account number yet, check this box and the Tax ID* field will automatically show as “Applied For.”
- Tax Rate - Tax rates are related to unemployment taxes. A ‘New Employer’ tax rate is entered for unemployment tax until a rate is assigned. Click here to find the New Employer tax rate for your state.
Be sure to click “Save” at the top of the page to save your new Tax.
*Please note that fees may apply if the Tax ID is not entered within 60 days. A $100 fee will be assessed for each state missing a TaxID 60 days after the first payroll run and every 60 days thereafter until the Tax ID is entered into TRAXPayroll. A reminder notification will be sent out weekly as a reminder to follow up and get this entered.
Tax information needs to be updated when it changes so taxes are filed and paid timely. If an unemployment rate has changed, end the existing record and add a new one with the effective date of the change.
To update tax information, click the Action button next to the tax in the list. Then select the applicable option from the list:
- End - as of End of the Year
- End - on specific date
- Add next year rate as of (1st of Quarter 1)
- Add next quarter rate as of (1st of Quarter 2)
- Make change - to correct existing record
- Void - created by mistake but has history
- Remove - created by mistake
Starting on January 1, 2018, nearly all private employees in the state of New York became eligible for Paid Family Leave.
- Insurance coverage for Paid Family Leave benefits generally will be added to an employer's existing disability benefits policy.
- Paid Family Leave coverage is funded by employee payroll contributions and is calculated as a payroll tax on employees working in NY. TRAXPayroll does not collect the tax from your bank account. The company pays the premium to their insurance carrier directly.
- This tax will show as uncollected in reporting because it is something you will pay to the state, TRAXPayroll does not make this payment for you.
If you have additional questions about the New York Paid Family Leave benefit, here is a link for more information.