Calculate penalties and interest on payroll tax forms
If you're making your payment late, you will likely be required to pay interest or penalties on the outstanding amount on the payroll tax form. You can choose to have the application automatically calculate penalties and interest for the forms, but this feature is not automatically enabled.
note
- When you enable this feature, penalties and interest (based on your current system date) are automatically included on the forms when adjustments are processed.
- The payroll tax form must contain rows designated for interest and/or penalties for the fees to be calculated.
This feature can be turned on in one of 2 screens:
- Actions, thenEdit Payroll Tax forms.SelectCalculates PenaltytheInterestto have the application calculate penalties and interest on the currently selected forms, based on your current system date. This remains active (green) until manually toggled off or until the application is closed.
- Actions, thenProcess Payroll Tax Forms.Mark theCalculate penalty/interestcheckbox to have the application calculate penalties and interest on the currently selected forms, based on your current system date. Once you mark the checkbox, it remains marked until manually cleared or until the application is closed.
Create the liability
Use
Process Adjustments
to create a Payroll Liability check for the calculated penalties and interest. The adjustment will appear as a Pen/Int Adj
in the Print Checks
, then Payroll Liabilities
tab.note
Process Adjustments
isn't available when Do not create tax liabilities
is selected in Payroll Taxes
tab of the Client
screen.
