Deducting additional / extra tax

If you need to deduct extra or additional tax for an employee, you can easily add these amounts to your payrun. First determine if you need to do a one time extra deduction or if you will need to deduct an amount over multiple payruns.

One time deduction

1. Log into your payroll account and start your payrun as normal.
2. At the REVIEW stage select the employee from the drop down list you wish to deduct additional tax for and modify the FEDERAL TAX field.
   
3. SAVE the record and complete your payrun. Your remittance report and your employee payslips will reflect the additional (manual) tax amount you've entered.

Additional tax as a rule (multiple payruns)

1. Log into your account and go to SETTINGS -> PAY RULES -> DEDUCTIONS. We'll be creating a custom rule to deduct either a percentage or fixed amount from each payrun. 
2. Either modify an unused rule or create a new rule with the description "Additional tax". This description will show on your employee pay slips. Assign the same general ledger (GL) code you've used for federal tax (if you do not, these taxes will NOT be included in your remittances). If you are using the default   General Index of Financial Information (GIFI) codes, the number is 2628. Otherwise, check what you've used by going to SETTINGS -> PAYROLL OPTIONS -> GL.
    
3. Enable the new rule and click save
4. Now go to the EMPLOYEES section. We'll be applying the new rule to each staff member who needs the additional tax deduction. EDIT the employee and go to the DEDUCTIONS tab
   
   Use the drop down box to select the rule you just created and click ADD. Now determine if you'll be taking a fixed amount  ($) from each pay run or a percentage of their gross (%). Enter the amount or percentage and click SAVE.
5. Now when you perform your next pay run, the additional tax will be deducted for the employee and will be reflected in you remittance reports.