UFED_TAX_METHOD (U.S. Federal Tax Method) is an optional fixed lexicon used to indicate the override for federal withholding tax. The tax may be calculated by the normal (tables) method, the percentage method, a flat amount, a combination of these three methods, or by another method.
US Tax Withholding Options
Because our users have an automated payroll system, the IRS requires they use the Percentage Method tables per publication 15-T.
The only four federal methods supported are:
- Annualized Method
- Annualized + Amount (recommended)
- Ann/0 Tax/Upd Wage
- By Supplemental Meth
* Step 2 selection
* Step 3 Dependent amounts
* Step 4 Other income, Deductions, Extra Withholding
****The Extra withholding will only work if the “Annualized + Amount” is selected. Thus this is the recommended option.
Exempt
When an employee claims exempt on the W4, the proper setup should be “Ann/0 Tax/Upd Wage” and should be setup on the employees record as an override.
Supplemental Method
A special pay category should be setup with this method to handle percentage payments for supplemental payments.
All other methods available should be reserved for special allowances such as Distributions of Indian Gaming Profits.
X_UFED_TAX_METHOD is a FIXED LEXICON with the following values: For employees with multiple assignments who are paid with multiple time sheets in one pay period.
* PTD Method
Saved
ValueDisplayed Value 01 Annualized Method 02 Annualized + % 03 Annualized + Amount 04 % on element UFWTERN 05 % on element UFWTPERC 06 Flat Amount 07 Cumulative Averaging 08 By Supplemental Meth 09 Ann/0 Tax/Upd Wage 10 PTD Method 11 PTD Method + % 12 PTD Method + Amount 99 Do Not Calculate
* PTD Method +%
* PTD Method + Amt
