Creating tax categories

  1. Select Payroll > Administration > Setup.
  2. In the Structure pane, click Deductions.
  3. Click the Tax Categories tab.
  4. Click Create.
  5. Specify this information:
    Tax Category
    Specify the tax vendor code to define the tax category.
    Description
    Specify a description.
    Adjust Pay
    Specify which party is responsible for the cost of a deduction code that is assigned to an employee:

    • Employee Paid: The deduction is paid by the employee.

    • Employer Paid: The deduction is paid by the company.

    • Add To Net: The amount is added to net pay. It can be used to reimburse employees for expenses or to apply earned income credits.

    Country
    Specify a country.
  6. Click Save.