Payroll 2.18 Tax Rule Question

SOLVED

With the new version of Payroll in 2018, there are now tax rules that need to be applied to each earning or deduction. We’re having a problem knowing which rule to apply, as it relates to pre-tax deductions.  We need the cafeteria and Simple IRA deductions to be pre-tax, but we need a local transit tax to calculate on gross wages earned.  Specifically, we (in Oregon) have a Transit Tax that needs to be based on Gross Wages.  We're just wondering which rules to apply. Is there a more comprehensive list, with descriptions of what each rule does, when and where to use it?

  • 0
    SUGGESTED

    KB 89770 does not explain which taxes to use but is the link to the defect/enhancement requested to provide information on the tax consequences of each tax rule for earnings and deductions.  Last target was for Payroll 2.19 however that date is subject to change.  Steps are provided to determine the tax consequences of tax rules.

  • 0

    So is there any list that explains what each tax rule does?  It was easy in the old version to set taxability of wages and deductions.  The new list is far more complex and far less intuitive to understand the tax implications of a rule.  End users are at a loss - they can only find out by trial and error what each rule does.

  • +1 in reply to CaseySkousen
    verified answer

    There are 2 kb's that explain how to use the Tax Rule Inquiry feature.  Search in the knowledge base for KB's 95959 and 101808.  This utility will have black dots to show all earnings tax rules subject to each tax and red dots to show tax rules that reduce tax for any Pension/Cafeteria Deduction codes.  You must use the Tax Profile for the employee in question.