Payroll Tax Tables

With a new year come new tax rates.

Before the first Payroll is calculated, a new tax table must be added within Payroll's Configuration. For complete steps, visit our solution on how to add or update Federal, State or Local tax tables. Although you are able to edit existing tax tables, we suggest creating a new table each year for a clear audit trail. The new default tax rates will be automatically populated when adding the new tax table after installing the End of Year patch update (you must be on the latest version, 7.87, before installing the end of year patch). If you are hosted, the tax update will be applied to your database by our hosting engineers on January 6^th .

As both Federal and State taxes are subject to changes, we strongly recommend comparing any newly created tax tables to the annual tables in your Circular E, Employer's Tax Guide (PDF) to ensure accuracy. The Circular E. may also be used as reference for rates when creating a new tax table if your organization has a period end date before the End of Year release has been applied to your database.

Within tax tables, the Effective date determines which tax table to use for calculations. It compares the period ending date of the Payroll calculation with the effective date of the tax tables in Configuration. For a demonstration on creating tax tables, watch the video below: