(US) Add employee tax details

Federal taxes

1. Navigate to an employee’s Tax info > Federal tax US tab.

2. Federal filing status – select the employee’s federal filing status. This information can be found on line 3 of their Form W-4.

3. Allowances – select the employee’s allowances. This information can be found on line 5 of their Form W-4.

4. Add additional federal tax – if your employee wants to withhold a higher amount in personal income tax, you can enter the additional tax amount as a % or $ value of gross pay. This information can be found on line 6 of their Form W-4. Note: the additional amount is automatically withheld when you process payroll, but it is not reflected as a separate line item on the paystub.  

5. Fed tax override (default: No) – this allows federal tax withholdings to be calculated at a flat rate or fee instead of the standard withholding formula. Additionally, if the employee is exempt from federal tax withholdings (see line 7 of their Form W-4), set the toggle to 'Yes' and enter 0 as the Override value. 

6. Override value – enter the value the employee sets as a % or $ amount of gross pay.

7. FICA status (default: Subject) – if applicable, you can mark the employee exempt or set it up to collect Medicare contributions only.

8. Federal unemployment tax (FUTA) exempt (default: No) – set the toggle to 'Yes' if the employee is exempt from contributing to FUTA.

9. Save changes to the employee’s federal tax information.

State taxes

1. Navigate to an employee’s Tax info > State tax US tab.

2. Resident state is (default: Lives and works in)

3. Works in state (default: State indicated in the employee's Person tab) – select the state the employee works in, if it is different from where the employee resides. Note: this location is used to calculate unemployment tax.

4. Resident state filing status (default: Single) – select the employee’s state filing status from the options provided.

5. Allowances – select the number of personal exemptions for the employee, as indicated on their state withholding form.

6. Dependent exemptions – if applicable, select the number of dependent exemptions for the employee, as indicated on their state withholding form.

7. Add additional state withholding – if your employee wants to withhold a higher amount in state taxes, you can enter the additional tax amount as a % or $ value of gross pay.

8. State tax override (default: No) – this allows state tax withholdings to be calculated at a flat rate or fee instead of the standard withholding formula. Additionally, if the employee is exempt from state tax withholdings, set the toggle to 'Yes' and enter 0 as the Override value.

9. Override amount – enter the value the employee sets as a % or $ amount of gross pay.

10. State unemployment exempt (default: No) – set the toggle to 'Yes' if the employee is exempt from contributing to SUTA. 

11. State disability insurance status (default: No state disability insurance) – if the employee is subject to or exempt from contributing toward state disability insurance, select the applicable option in the dropdown.

12. Save changes to the employee’s state tax information.

Local taxes

1. Navigate to an employee’s Tax info > Local tax US tab.

2. The app determines all applicable local taxes using the zip code for the company address (see Company info tab) and the zip code for the employee (see Person tab).

3. By default, all local taxes are set to an 'Active' status, which means that local taxes will be calculated and paid to the respective local tax agency.

4. Click the x icon to delete a local tax you do not want Wagepoint to calculate or pay on your behalf. 

Note: Setup all your employees before completing the Tax > Tax rates & frequency tab to ensure that all applicable taxes are displayed so you can enter your tax account numbers and select the payment frequency. 

Additional resources:

• US Small Business Administration Manage your business Pay taxes