To set up defaults for how Sage 50 handles employer-paid taxes and contributions, select the Company Fields tab in the Employee Defaults window. These payroll fields do not impact the net amount of the employee paycheck.
Important! You must subscribe to a Sage Business Care plan to calculate payroll fields within Sage 50. Otherwise, you will have to manually calculate your payroll taxes, withholdings, and deductions.
Description: Enter the name of the payroll field, or use the defaults.
Warning! Once you start entering payroll transactions, do not change the name of payroll field names or change the order in which payroll field names are listed. If you change the payroll field "name" setup, earnings reports and W-2 form information will become inaccurate. Also, we do not recommend changing Fed_Income and other standard payroll fields names that Sage 50 sets up for you. These payroll field names are used in tax calculations if you subscribe to a Sage Business Care plan. You can change the order of fields that display on pay checks and the Payroll Entry screen in the Payroll Settings wizard. But you should not change the order of fields here, in Employee Defaults.
Liability Account: This is the number of the general ledger liability account you want to use. Typically this is employer-paid payroll tax liability.
Expense Account: This is the number of the expense account you want to use. Typically this is employer-paid payroll tax expense.
Calculate (Calc): Select this check box if you want Sage 50 to automatically calculate the payroll field amount when computing paychecks. If you select this check box, you must also select a formula name to use when calculating the amount. You should uncheck this checkbox if you don't subscribe to a Sage Business Care plan. You must subscribe to one of these plans in order for payroll fields to be calculated in Sage 50.
Formula: If this field can be calculated, enter the name of the payroll formula to use (not the Formula ID)without the payroll year. Type ? to see a list of formulas. You must subscribe to a Sage Business Care plan for this field to be calculated.
Memo: Select this check box if the information in this field does not affect your company general ledger or financial statements. An example of this would be if you need to track the cost of health care insurance without posting entries to the General Ledger.
Adjust: If this field can be calculated, select this button to display the Calculate Adjusted Gross window where you can choose which payroll fields are accumulated to determine the adjusted gross for this calculation. You must subscribe to a Sage Business Care plan for this field to be calculated.