Tax Engine
A Tax Engine is an application used to maintain tax tables for the Infor Payroll application for tax changes such as rates, tax laws, and tax limits.
Tax Engine Setup Requirements and Options
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The Tax Engine can provide federal and many state, province, local, city and county tax tables you need. You must maintain any city or county tax that the Tax Engine does not provide.
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You must map each user defined Tax Code to a System Tax Code.
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During the initial installation, you must create any tax authority names and enter unemployment experience ratings (custom data).
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You must enter the Tax Company code when you set up an HR company.
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If you have multiple unemployment experience rates within the same state, you need to define multiple Tax Company codes. You assign the different Tax Company codes to separate process levels, and flag each process level as independent.
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A Tax Company code on a process level overrides the Tax Company on the HR company.
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A Tax Company code on an independent process level overrides the Tax Company code on the dependent process level assigned to it.
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If a company calculates taxes in the U.S., all tax deductions must be linked to the proper Tax Authority on U.S. Tax Authority (PR06.1) for tax calculation.
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If a company calculates taxes in Canada, all tax deductions must be linked to the proper Tax Authority on Canada Tax Authority (PR08.1) for tax calculation.
Example
All Two Rivers divisions are in Minnesota and New Jersey.
River Bend Hospital, in Minnesota, has an unemployment experience rate different from the other Minnesota locations. Therefore, River Bend Hospital must be its own unique process level with its own unique Tax Company code, which we will call TR2.
The same situation is true for the Two Rivers New Jersey locations. Grove Clinic has an unemployment experience rate different from the other New Jersey locations. So, Grove Clinic remains its own unique process level with its own unique Tax Company code called TR3.
