Setting up mandatory tax contributions for employees

Shortcut/mask: HRPYMD

Mandatory assignments are tax deductions, such as federal income tax (FIT) and state income tax (SIT). The mandatory tax assignments you create in Human Resources (HR) update the contribution, deduction, and hours (CDH) assignments in Payroll. Refer to the topic Assigning contributions, deductions, and hours in the Payroll online user guide. You must complete the HR System Set Up (HRRQSS) window before you complete this procedure. 

The HR Mandatory Assignments window contains the following tabs:

  1. Select Add.

    Note: If the entity you are working with does not have any existing records, the window opens in "Add" mode and you can skip this step.

  2. To change an existing record, select the record you want to work with in the "Records" section.

  3. Complete the following fields:

    • Action: Reason for adding or modifying the record.
    • Notes: Additional information you want to note about this addition or change.

  4. Complete the following fields in the FIT and SIT sections of the Primary Taxes tab:

    • CDH: CDH number for this assignment. 
    • Fq: How often the deduction is made, such as "Always" or "First Check." You define status codes in the HR Non-entity Specific Codes table (HRTBHR) with a code ID of FREQ/PY_TYPE.
    • Box: This is the box number in the Pay Period Definition (PYUPPR) window, where the Fq field value for the frequency matching to occur is entered.
    • Filing: FIT or SIT filing status. This may or may not be the same as the employee's marital status.
    • Allowances: Number of allowances the employee claims for FIT or SIT.  Enter 0 through 99. 

    • Cd03: Internal Revenue Service (IRS) status flag.

      Note: This is not the filing status and may be used for other purposes.

    • Cd04: User-defined code that indicates special processing is required in Payroll. You define these codes in the HR Non-entity Specific Codes (HRTBHR) window with a code ID of CODE04FIT.
    • Vendor: Vendor associated with the entry. You set up vendor codes in the HRTBVE table.
    • Reg Amt: User-defined code that indicates special processing is required in Payroll. You must complete the Cd04 field to use this field.
    • Beg/End Dt: Effective date range of the assignment. These dates determine when the CDH is taken in Payroll. The effective begin date automatically defaults to the hire date. You can keep this date or change it.

    • State: State where the taxes are filed.

      Note: This field only displays in the SIT section. The default state is set up in the State Income Tax CDH Defaults (HRRQSD) window.

    • St: Status of the deduction.
    • Addl Amt: Additional tax amount to be deducted, if applicable.

    • Addl Beg/End Dt: Dates the additional deduction amount is effective.

      Warning: You must manually stop additional deductions. HR does not automatically stop additional amounts when they reach a certain amount or date.

  5. Complete the following fields in the EIC" section:

    • CDH: CDH number for this assignment.
    • Fq: How often the deduction is made, such as "Always" or "First Check." You define status codes in the HR Non-entity Specific Codes (HRTBHR) window with a code ID of FREQ/PY_TYPE.
    • Bx: Number of months this benefit is effective.
    • EIC Cd: Indicates if and how the employee is filing for the EIC. Select one of the following:
    • N (none)
    • O (one)

    • B (include both the employee and spouse)

      Note: IRS form W-5 must be filed to claim an EIC.

    • Beg/End Dt: Dates the EIC assignment is effective. These dates govern when the CDH is taken in Payroll. The begin date automatically defaults to the hire date. You can keep this date or change it. The end date cannot exceed December 31 of the year for which the form W-5 is filed.
    • St: Status of the deduction.

    • Cd03: Number of children claimed for the EIC.

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  6. 5. Complete the following fields on the Other Federal Taxes tab to enter SS/FICA and Medicare information.

    • Y/N: Whether this record includes an entry for SDI on the Other State Taxes tab. Your selections are:
    • D: HR copies the contents of the C/D, Cont CDH, and Ded CDH fields from the HR System Set Up (HRRQSS) window.
    • Y: This record contains a deduction for FICA,
    • N: This record does not contain a deduction for FICA,
    • C/D: Indicates whether the Social Security or Medicare assignment is a contribution, deduction, or both. 
    • Cont CDH: HR completes this field for you based on your entries on the HR System Set Up (HRRQSS) window. Refer to Setting up the Human Resources system defaults.
    • Ded CDH: HR completes this field for you based on your entries on the HR System Set Up (HRRQSS) window.
      Refer to Setting up the Human Resources system defaults.
    • Beg/End Dt: Dates the Social Security or Medicare assignment is effective. These dates govern when the CDH is taken in Payroll. The begin date automatically defaults to the hire date. You can keep this date or change it.
    • Fq: How often the deduction is made, such as "Always" or "First Check." You define status codes in the HR Non-entity Specific Codes (HRTBHR) window with a code ID of FREQ/PY_TYPE.
    • Bx: This is the box number in PYUPPR, where the Fq field value for the frequency matching to occur is entered.
    • Cd01: User-defined code to include additional information you want to note.
    • St: Status of the contribution or deduction.

    • Vendor: Vendor associated with the entry. You set up vendor codes in the HRTBVE table.

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  7. Complete the following fields on the Other State Taxes tab to enter information for WCOMP insurance, SUI, and SDI.

    • Y/N: Whether this record includes an entry for workers' compensation, SUI, or SDI. Your selections are:
    • D: HR copies the contents of the C/D, Cont CDH, and Ded CDH fields from the HR System Set Up window (HRRQSS) 
    • Y: This record contains a deduction
    • N: This record does not contain a deduction
    • C/D: Indicates whether the assignment is a contribution, deduction, or both. 
    • Cont CDH: HR completes this field for you based on your entries on the HR System Set Up (HRRQSS) window.
    • Ded CDH: HR completes this field for you based on your entries on the HR System Set Up (HRRQSS) window.
    • Beg/End Dt: Dates the assignment is effective. These dates govern when the CDH is taken in Payroll.  The begin date automatically defaults to the hire date. You can keep this date or change it.
    • Fq: How often the deduction is made, such as "Always" or "First Check." You define status codes in the HR Non-entity Specific Codes (HRTBHR) window with a code ID of FREQ/PY_TYPE.
    • Box: This is the box number in PYUPPR, where the Fq field value for the frequency matching to occur is entered. 
    • Cd01: User-defined code to include additional information you want to note.
    • St: Status of the contribution or deduction.

    • Vendor: Vendor associated with the entry. You set up vendor codes in the HRTBVE table.

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  8. Complete the following fields:

    • Approval: Whether you want to update the CDH information in Payroll with the information on this tab. Your selections are:
    • APPR: Request approval before sending updates to Payroll
    • SEND: Send updates to Payroll
    • WAIT: Save updates in HR only
    • Updated By: User ID of the last person to update the record.
    • Updated: Date and time of the last update.

  9. Press Enter or select Save Changes.

    Result: You have set up Human Resources (HR) employee mandatory tax contributions for an employee.

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