Variables can appear in an equation on either side of the equal sign (=). Legal variables are all of the 26 letters of the alphabet, plus four special variables as follows:
ANSWER- This variable must appear on the left side of an equal sign in at least one equation, since it is through the ANSWER variable that the calculation result is reported back to whichever program needed the result.
TAXABLE_GROSS- If the 'Appears on Payroll Tax Report Menus' field is checked, this variable must appear on the left side of an equal sign in at least one equation, since this value is needed when printing the Payroll Tax report and the Exception report.
LIMIT -Certain state forms require the limit to be reported on the form. If this is the case, the LIMIT variable can be set to the answer required by the state.
PERCENT -Certain state forms require the tax rate percentage to be reported on the form. If this is the case, the PERCENT variable can be set to the answer required by the state.
TAX_AMT1- This variable is used for the regular tax amount.
TAX_AMT2- This is used to calculate additional tax needed for higher earners.
TAXABLE_GROSS2- This variable is used to identify the wage amount to apply the additional TAX_AMT2.
PERCENT2 - This is used to identify the percentage for the health insurance tax.
Tip: To see examples of how to set up formulas and tables, open the sample company Bellwether Garden Supply. From the File menu, select Payroll Formulas, then User-Maintained. Select a tax that resembles what you are trying to set up and note the formula and (if applicable) the table in the example. These formulas and tables are only examples; you should verify their accuracy by checking the latest calculation rules from the IRS (www.irs.gov) or your state or local tax authority, or by making sure the values entered match company policies (for examples regarding 401K, vacation, etc.)
You must subscribe to a plan that includes payroll to access payroll formulas within Sage 50.
Remember that to set the value of a variable, that variable must appear on the left side of the equal sign (=) in an equation. To use the value of a variable, that variable must appear on the right side of the equal sign in an equation. A variable can appear on both sides of the equal sign, even in the same equation.
For example:
S = 4500
sets the value of the variable S to 4500, while
ANSWER = S + 500
sets the value of the variable ANSWER and uses the value of the variable S. If the first equation above had been used to set the value of the variable S to 4500, then the second equation would set the value of the variable ANSWER to 5000.