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Set up your client

Set up client payroll tax information

The
Payroll Taxes
 tab and the
1099 Forms
 tab of the
Clients
 screen provides a single location for virtually all tax-related set up for a client. When you prepare to process forms (monthly, quarterly, annually), you may need to add, modify, or verify information on these tabs. Here you can configure applicable taxes for the client, filing frequencies,
applicable forms,
and link agents to a tax or taxes for payment purposes.
important
The taxes applicable to a client are determined by the application based on the client's work location and taxing address and ZIP Code entered in the Main tab of the Clients screen and each of the employee's resident addresses, making it very important to use the address verification feature when entering address information for clients and employees.
note
IRS regulations made on February 23, 2023 reduce the threshold for filing certain information returns electronically. For more information, refer to the related content link.
Follow these steps to set up the appropriate taxes
and forms
 for your client.
  1. Select
    Setup
    ,
    Clients
    , then the
    Main
     tab.
  2. Verify the location and taxing address information for your client. Because the application uses this information to determine what taxes
    and forms
     are applicable to the client, it is very important to use the address verification feature when entering address information for clients and employees, especially if local taxes exist for the state.
  3. Select the
    Payroll Taxes
     tab.
  4. In the
    Federal
     section, enter the client's EIN/SSN, select the employer type (the default is
    Regular (941)
    ), select the appropriate deposit schedule, and mark any applicable checkboxes.
    note
    The information you enter in the
    Federal
     and
    State
     sections (such as deposit schedule information and employer type) directly affect the forms that display in the
    Forms
     section in this screen as well as the forms that display in the
    Edit Payroll Tax Forms
     screen and
    Process Payroll Tax Forms
     screen for this client.
  5. In the
    State
     section, verify, add, or modify information as appropriate for each state and locality in which the client has locations or employees. (If the client uses multiple states, select each state in turn from the
    State
     dropdown.)
    note
    You can select the ellipsis next to the
    Deposit schedule
     field to open the
    Deposit Schedule
     screen. Here you can set the deposit schedule and specify an effective date. Refer to the following effective date requirements:
    Deposit schedule
    Effective date requirement
    • Accelerated EFT
    • Monthly
    • Quarterly
    • Semi-monthly
    • Semi-weekly
    • Weekly
    The effective date must be the 1st day of a quarter. (01/01/20xx, 04/01/20xx, 07/01/20xx, 10/01/20xx)
    Annually
    The effective date you specify must be the 1st day of a year. (01/01/2019, 01/01/2020)
    Semi-annually
    The effective date you specify must be either 01/01/20xx, or 07/01/20xx)
    To update the state unemployment tax rate, select the ellipsis in the
    UI base rate
     field. In the
    Unemployment Rate
     screen, select
    Add
     to create a new unemployment rate. Then, enter the
    Effective date
     of the rate change, the base rate, and any other state-specific rates applied to the unemployment tax. When you're finished, select
    Enter
     to save the new rate.
  6. In the
    Taxes
     section, mark the following checkboxes if they apply for the client:
    • Do not combine state unemployment
      : When this checkbox is marked (the default setting for new clients), the application calculates employee and employer-paid state unemployment and insurance taxes (including SDI, TDI, FLI as applicable) for the state separately, based only on wages earned in that state. If the checkbox isn't marked, the application calculates unemployment and insurance taxes for the state associated with the employee’s primary location based on wages earned in any state.
    • Do not create tax liabilities
      : When this checkbox is marked, no tax liabilities are generated for the selected client. This option would be appropriate for clients whose tax liabilities are paid outside of the application, and should therefore not generate unprinted checks. When the checkbox is marked, after-the-fact payroll checks aren't available in the
      Generate Liabilities
       screen.
  7. The taxes grids list the state, local, and federal taxes for which the client is (or may be) responsible. Modify the GL liability and expense accounts here, if necessary, and also mark any particular tax as wage exempt for this client, if applicable.
  8. The
    Forms
     section grids update to reflect your entries in the
    Federal
     and
    State
     sections of this screen and display all forms that your client may be required to file.
    1. Verify or modify the filing method for each form, if necessary.
    2. Change the selection in the
      Filing Instruction
       dropdown list to specify if you want to print filing instructions with the filing copy, the client copy, both copies, or neither copy.
    3. Mark the
      Do not File
       checkboxes next to any forms that your client won’t need to file.
      note
      For each type of federal and state form verify the required information.
      • Make selections in the Taxpayer signature and Preparer signature dropdown lists.
      • (Federal 94x forms) If filing electronically, enter a business name control, or final statement information if the business closed, sold, or transferred.
      • (State forms) Enter any state-specific information in the
        Additional Information
         screen.
  9. If you are filing any forms using the Electronic filing method, choose
    Actions
     then
    Process Electronic Forms
     and select
    Transmission Information
    . Verify the information entered in the
    Transmission Information
     window.
  10. If you are filing any forms using the Internet/Magnetic filing method, choose
    Actions
     then
    Process Internet/Magnetic Files
     and select
    Transmission Information
    . In the
    Transmitter Information
     screen, verify the File contact and any other relevant IDs or numbers that were assigned by the state.
    note
    For example, verify the
    User ID
     for filing W-2 forms via the SSA or the Transmitter Control Code for filing 1099 forms via the IRS FIRE system.
  11. For each jurisdiction listed in the forms tables, select
    Additional Information
     to open the
    Additional Information
     window for that jurisdiction. You can enter additional information unique to the form processing requirements on this screen.
  12. Select the
    1099 Forms
     tab to verify or modify the filing method and other settings for each 1099 form type. You can also enter a threshold amount to override the default printing threshold for each 1099 form type for the client.
  13. Select
    Enter
     to save the information.
    note
    Consider using templates for client set up if you generally file a particular way. For example, if you usually file electronically as a reporting agent, you can set the filing method for all your forms within the template, and you could fill out the signature area ahead of time for all clients.

This article applies to:

  • PRODUCT: Accounting CS
  • Subject: Clients,Payroll tax forms

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