Setting up Tax Balancing configurable fields

  1. Payroll > Administration > Reports.
  2. In the US Regulatory pane, click Tax Balancing.
  3. In the Setup pane, click Configurable Fields.
  4. Click Create.
  5. Select a legal entity.
    Leave the Legal Entity field as blank to apply the configuration to all legal entities when processing the report.
  6. In the Custom Earning Exception section, specify the pay class where the wages are exempted from the tax calculation.
  7. In the Custom Deduction Exception section, specify the deduction class for custom pre-tax deductions that reduce taxable wages.
    Custom Deduction Reduces Federal Withholding
    Select the deduction class which contains custom deductions that reduce Federal Withholding taxable wages.
    Custom Deduction Reduces Employee Medicare Tax
    Select the deduction class which contains custom deductions that reduce Employee Medicare taxable wages.
    Note: A confirmation prompt appears if the selected deduction class contains deduction codes already recognized by standard pre-tax buckets, such as 401k, 403b, Section 125, FSA Health, and so on. Verify that no overlap exists to prevent double-counting in the variance calculation.
  8. Click Save.