How to set up multiple state income tax (SIT) withholdings ?

How to set up multiple state income tax (SIT) withholdings ?

Support Team Asked on December 15, 2017 in Sage.
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    Description
     
    • Setup state income tax calculation
    • SIT is withheld for multiple states
    • Employee works in different state
    • Company’s home state does not have state income tax (SIT), but an employee lives in a state that does
    Disclaimer
     
    Support
    Sage Customer Support does not provide assistance for issues related to third party products or enhancements, hardware, report customizations, state or federal tax-related questions, or specific accounting questions. Please contact your Sage business partner, network administrator, or accountant for assistance. Please review this document for additional information on the scope of Sage Customer Support Services.
    Resolution
     

    Section ISet Existing SIT Field for Multiple States

    1. Click Maintain, Default Information, Employees
    2. Select the Employee Fields tab
    3. On the State line, enter **SIT for the Formula
      • When payroll is calculated for each employee, **SIT instructs the program to check the employee’s Withholding Info settings and apply the appropriate SIT formula (for example, if State is set to GA, Sage 50 will use GASIT)
      • **SIT cannot be selected from the Formula drop-down list, and must be typed in
    4. Click the Adjust column arrow to open the Calculate Adjusted Gross window
    5. Go to Employee Field Names section on the left
    6. Check the Use box where Field Name equals Gross
    7. Click OK on the Calculate Adjusted Gross window
    8. Click OK on the Employee Defaults window
    9. Proceed to Section III.

    Section IICreate SIT Payroll Field

    Note: It is only necessary to create a SIT payroll field if it is not present.
    If the SIT field is configured for multiple states as in Section I, skip to Section III.

    1. Click Maintain, Default Information, Employees
    2. Select the Employee Fields tab
    3. On the next available row, enter State_Inc in the Field Name column.
    4. Click the G/L Account column for that row and use the drop-down list to select the State Income Tax Payable account.
      Note: If the primary state for the company does not have a state income tax, only do steps 1-4 and skip ahead to Section III.
    5. Enter **SIT for the Formula
    6. Click the Adjust column arrow to open the Calculate Adjusted Gross window
    7. Go to Employee Field Names section on the left
    8. Check the Use box where Field Name equals Gross
    9. Click OK on the Calculate Adjusted Gross window
    10. Click OK on the Employee Defaults window

    Section III: Set Up Employees

    1. Click Maintain, Employees/Sales Reps
    2. Select the first relevant Employee ID
    3. Select the Withholding Info tab
    4. Verify the correct state is entered in State/Locality on the State line
    5. Select the Employee Fields tab
    6. Verify the SIT field is set correctly
      • If the company’s home state has a state income tax, Use Defaults should be checked for all employees, except employees living in a state without an income tax
      • If the company’s home state does not have an income tax, uncheck Use Defaults, check Calc, and select the relevant SIT tax formula from the Formula drop-down list (for example, GA SIT for an employee living in Georgia)
    7. Click Save
    8. Repeat steps 2-7 with each employee record as needed

    Source: Sage Community forums.

    Disclaimer: Sage Accounting Solution is an independent provider of Sage Related services and is not affiliated with Sage.

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    Support Team Answered on December 15, 2017.
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