Creating secondary withholding codes

Secondary withholding codes are used to link a general ledger withholding accrual account to an invoice. The account is used to accrue secondary withholding for vendors, for example, when you are required to withhold a portion of the invoice payment.

  1. Select Financials > Payables > Payables Setup > Payables Codes > Secondary Withholding Codes.
  2. Click Create.
  3. Specify a Vendor Group, Secondary Withholding Code, and Description.
  4. Specify this information:
    Minimum Payment Amount
    Specify a minimum payment amount before secondary withholding applies.
    Withholding Type
    Select whether withholding for Federal, State, or Other taxes.
  5. Click Save.
  6. On the Rates tab, click Create and specify this information:
    Effective Date
    Specify the date that the withholding code becomes effective.
    Withholding Percent
    Specify the rate of withholding.
  7. On the Details tab, click Create and specify this information:
    Company
    Select the company for the withholding code.
    Withholding Account
    Specify the withholding account for the company.
  8. Click Save.