Withholding Info (Maintain Employees/Sales Reps)

Check this box to indicate that the employee is in a 401K or other retirement plan. This box replaced the Pension and Deferred boxes on the W-2.

Check this box if the employee qualifies as an employee by statute based on IRS guidelines. Statutory employees may be subject to social security, Medicare, and FUTA taxes in certain conditions.

Withholding information identifies how the employee will be taxed during payroll entry. Learn more

These identify the standard Federal, State, Local, and 401(k)% payroll fields for which conditions unique to the employee must be set up. You cannot change the names of these fields. Special 1 and Special 2 payroll fields allow you to customize payroll tax formulas, if necessary.

Select a valid filing status from the drop-down list for the Federal, State, and Local payroll fields. For the federal filing status, select either Single or Married. For state and local filing statuses, choose only from those permitted in the employee's state and locality from the drop-down list.

Enter the number of allowances the employee is claiming. Enter 99 if the employee is exempt from withholding.

Enter any additional withholding--an amount in addition to the calculated withholding--the employee has requested.

This identifies the state and local region where the employee resides; these values determine which formula is used during payroll entry. The State/Locality values will print on W-2 forms.

State Payroll Field: Enter or select the two-character state abbreviation from the drop-down list here. Use the standard U.S. state abbreviations, District of Columbia (DC), Puerto Rico (PR), and U.S. Virgin Islands (VI).

Local Payroll Field: Enter or select the appropriate locality code from the drop-down list here. This could be a city or county that requires a local tax. You can enter up to eight characters. Refer to the Sage-maintained formulas for valid locality codes.