Payroll tax deduction flat amount

[jonnav35]

I am setting up payroll and one of our local taxes (LST) is $52 per year deducted over the course of the year. We are paid monthly so it is a deduction of $4.33 per month. How do I enter this tax? When I try and set up, the tax tables (using generic for local taxes) are all percentages? I need to add a flat amount deduction for each employee regardless of how much they make.

Thanks in advance for your help.

[NeilZ]

I am setting up payroll and one of our local taxes (LST) is $52 per year deducted over the course of the year. We are paid monthly so it is a deduction of $4.33 per month. How do I enter this tax? When I try and set up, the tax tables (using generic for local taxes) are all percentages? I need to add a flat amount deduction for each employee regardless of how much they make.

Thanks in advance for your help.

You must be in Pennsylvania:

OK this is how you do it:

1. Head to the Accounting menu -> Payroll -> Setup -> Maintain Tax Types

2. Add a Tax Type of Local Tax, for a description you can enter something that makes sense. I use City LST. Locality Name of LST Townname (this is used on the W-2 when printed.) Save everything.

3. Then head to Payroll -> Maintain Item Descriptions. I'm assuming you already have the Liability Account setup. Then Add a new Tax Deduction item.

4. Enter an item number (I use a number in the same series as I have the other tax deductions. Enter a Description, I use City LST Tax WH this is printed on the paystub. You then enter the liability account number where indicated. The Tax Type pull-down list will show all the taxes setup in the system, find the Tax Type you created in step 2. Select that, then select the Vendor who you send the withheld taxes to. If you haven't set it up, you can do it here by clicking on the "+" indicator next to the magnifying glass.

5. When that's all done, head to Maintain List of Employees and add this Pay Item to those employees that will have this tax withheld. Click on the Add button under the list of Pay Items on the Pay Item Tab.

6. From the pulldown list for Item Type select the list of Tax Deductions. FInd the LST tax you added in step 4 and click on the Next[/i} button. On the this screen you will select a tax table of Manual Amount , then enter the amount of 4.33. The checkbox for 'Use default GL Accounts should be checked so this will use the Liability account you entered in step 4.

That's it !!

[jonnav35]

Yes, I am in Pittsburgh!

Thanks so much. I did just as you said and am now good to go!

[NeilZ]

Yes, I am in Pittsburgh!

Thanks so much. I did just as you said and am now good to go!

Yeah ... I figured it was somewhere in PA