Differences

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--- us_-_labor_industries_tax_-_washington_state [2017/10/13 20:47 (7 years ago)] – [Tax] rreyes
+++ us_-_labor_industries_tax_-_washington_state [2017/10/16 14:30 (7 years ago)] – [Custom Tax] rreyes
@@ Line 10: / Line 10: @@
 ===== Tax =====
+Washington Labor and Industries tax is not currently set as a default tax within Windward Payroll. This tax needs to be configured locally and has to be updated locally.
-For the state of Alaska, there is no state tax. But they have this Labor and Industries tax where it is calculated based on the number of hours worked by an employee.
+==== Subtype Setup ====
-To setup this tax, follow the steps below:
+  - From the payroll main navigator, go to **//System Settings > System Settings > Subtype Setup//**.
-  * 1. Add WA Worker's Comp tax in the company setup.
+  - From the //IDAT Identifier// dropdown menu, select "Tax". Then enter freely the //Code// and //Description// of the new subtype.
-  * 2. Click the [Rates] button to open the rate table. In the <Amount> column, enter the employee rate and the employer rate at the <Formula> column.
+==== Calculation Setup ====
+  - Going back to the System Settings window, click the **[Calculation Setup]** button. From the //IDAT Identifier// drop menu, select "Tax" then click the **[New]** button in the toolbar.
+  - Enable the following check boxes:
+     * //Use Amount?// and label as "Hourly Rate"
+     * //Use T4 Box?// (5 boxes) and label as "W2 Box"
+     * //Use Expense Ledger?//
+     * //Use Liability Ledger?//
+     * //Use Rate Table?//
+     * //Use Formulas?//
+  - In the //Employee Contribution Formula//, enter the formula:
+     * (<IItemPay>/<Unit>)*<Amount[<AnnualPeriods>,<Subtype[RATE]>]>
+  - In the //Company Contribution Formula//, enter the formula:
+     * (<IItemPay>/<Unit>)*<Formula[<AnnualPeriods>,<Subtype[RATE]>]>
+  - In the Rate Sub Type grid, enter freely a name for the rate table. In this example, it should be RATE to compliment the formula from steps 6 and 7. Once all information are in place, click the **[OK]** button to save.
-  * 3. Enter ledger numbers
+==== Custom Tax ====
+  - From the payroll main navigator, go to **//Company Setup > Taxes//**.
+  - In the //Effective Date// field, set the date for which the tax that you are about to add would likely to take effect.
+  - Click the **[Add]** button to invoke the //Add New Tax// window.
+  - Since we are about to create a custom tax, click the **[Create]** button and click **[Yes]** to the confirmation dialogue.
+  - Enter the //Name//, //Abbreviation//, //State//, //Sub Type// (from #2), //Calculation Type// (from #3), and //Effective Date// and click **[OK]**.
+  - //Type// Tab:Enter the //Expense and Liability Ledgers// for posting and just leave the //Hourly Rate// as it is.
+  - Then click the **[Rates...]** button to open the rate table for this tax. Just click **[Yes]** on the confirmation dialogue to proceed with the creation of rate table.
+  - Set the range of 1 to 365 in the //Salary Start and End// columns. This will consider all of the pay periods.
+  - In the //<Amount>// column, enter the employee withholding rate which is in this example as 0.30530.
+  - Enter the employer withholding rate in the //<Formula>// column, which in this case is 1.09480.
+  - Then exit out of the rate table to go back to the //Type// tab by clicking the "X" icon at the upper right most corner of the window and navigate to the //Details// tab by clicking the **[Next]** button.
+  - //Details// Tab: Enter the payee of this payroll item in the //Remittance Payable to// field and configure the //W2 Boxes// for reporting purposes. Set the //Usage Control// to "Adjust Rates Allowed" and click **[OK]** to save and exit.
+<note important>Remittance Payable to and W2 Boxes may differ in the actual setup. Refer to you accountant as which specific tax box will it be reported as well as the payee for the remittance</note>
-  * 4. On the Details tab, enter the payee of this tax or where it is to be remitted to. The applicable W2 boxes and the usage control. Then click [OK] to save the changes.