Processing Payroll

Calculating Taxes

The labor module can be used to calculate payroll taxes and deductions as well as company taxes. The EBMS includes tools to handle very complex tax and deduction options. Taxes and deductions can be calculated from the timecard or from the Worker Payments dialog (the most common method).

Review Entering Timecards for instructions to calculate taxes from the timecard.

Complete the following steps to calculate taxes.  Note that this step must be accomplished even if no taxes are included in the worker record because of 3rd party payroll.

  1. Open the Labor > Worker Payments dialog launched from the main EBMS menu.

  2. Click on the Select All button to calculate taxes for all workers or select individual workers.

  3. Click on the Process button and select Calculate Taxes (Typical) to calculate the configured taxes and deductions for all selected timecards. The Calculate Taxes (Advanced) option should only be used for pay periods that involve bonuses or other uncommon payroll processes. (Review Bonus Pay Periods for an example of the need to use the Calculate Taxes (Advanced) option.)

  4. The Calculate Taxes process changes the Status of each selected timecards from Unprocessed to Calculated. Continue to Process Payments if all selected timecards have a status of Calculated. This step must be launched again if any changes were made to the selected timecards. This Calculate Taxes utilities can be processed multiple times. There are no negative consequences to running this utility multiple times.

View Taxes

Complete the following steps to view the taxes and deductions that will be withheld from the paycheck:

  1. Open the timecard you wish to view by opening individual Timecard Entry pages.

  2. Select the View > Taxes selection from the timecard menu.

  3. Use the up and down cursor keys on the keyboard to scroll list. Be careful not to change the taxes inadvertently. The message on this page reads "Warning: In a pre-tax scenario, changing tax amounts on this window may result in inaccurate taxable totals."

  4. Click OK on the tax list to close window. Select File > Close from the timecard menu to close timecard window.