The Federal Exemptions table allows you to define, with an exemption code and an amount, those federal exemptions that are currently applicable. The Federal Exemptions are global records accessed by all payrolls so changes to these entries will affect all payrolls. Federal exemptions codes are entered as sets based on an effective date. Multiple sets of Federal exemptions by effective dates allows payrolls under different calendar years to be run at the same. The pay period ending date from the payroll calendar per payroll is used to determine which set of Federal exemptions are active per payroll run. The selected effective date and tax parameters are displayed in the log of the Payroll Processing run.
The Employee Additions Change and Inquiry access of exemptions uses the current date to determine the applicable effective date and thus exemption amounts.
In Canada, some commonly used exemption amounts may be found on the latest version of the form 'TD1'.
In the US., exemption amounts can be in the current, local edition of the IRS publication 'Employer Tax GUIDE -CIRCULAR E' (or a similarly titled reference).
It should be noted, however, that any exemptions, not specifically identified in those publications, yet required by the user, may also be entered in this table.
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Save and Exit |
Enter 'E' to accept all changes and exit back to the menu. |
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Quit |
Press this button to quit without saving |
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Modify |
Enter 'M' to make changes to the current exemption amount. |
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Insert |
Enter 'I' to add an exemption code and amount for the current effective date. |
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Delete |
Enter 'D' to delete or Undelete the current entry. |
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Add |
Enter 'A' to create a new set of exemption codes. |
Effective Date
Valid date when exemptions become effective
Exempt Code
2 alphanumeric characters
Exemption
9 numeric, 2 decimals
For Canadian Payrolls Only:
Exemption Option 2
This field is only necessary when Option 2 income tax calculation is being used. The norm is Option 1.
Leave this field empty when Option 2 income tax is not being used.
Enter the Federal Exemption amount applicable for Option 2. The system uses this exemption amount when a value was entered. When no value is entered the exemption amount from field 2 is used on the Option 2 income tax calculations.