How Federal Tax Withholding is Set-Up in Finance Software- Account Cares

Employers are supposed to pay a certain amount in various kinds of taxes that are claimed on behalf of both the state and the federal governments. While some are levied on the employee itself, other such expenses have to be paid by the employer on behalf of the employees.

These charges are paid by remitting or deducting the required amount from the employees’ salaries. This process has been termed as Withholding. Here, we will talk about Federal tax withholding from your employees’ paychecks.

As an employer, you will need to follow some steps in order to set up Accounting Software Set Up Federal Tax Withholding in your system, before leaving it to the software. In the event that your employee list is not saved with all the necessary changes in QB, please make sure that it is done along with the other requirements that may be needed before proceeding.

For any doubts about this, you can contact Account Cares so that we can assist you with any query. We are available to guide you through the process as smoothly as possible.

If you are not sure about the details that you need to keep track of, just take a look at the list below- all of the data that you may possibly need has been mentioned here. Think of this as a checklist of a kind and cross each off as you fulfill the requirement:-

Setup Finance Software Federal Tax Withholding Checklist:

• Your Federal Employer Identification Number or FEIN
• The Employee Training Tax (ETT) and other such rates for your particular state
• The necessary forms that you are required to file for Payroll expenses
• The User Id and Password that you use to access the relevant bank account
• The exact schedule for FT payments, including Payment and Deposit
• Relevant Business contact Information (legal name of your company, e-mail, phone numbers, mailing address etc.)
• Your bank account as well as routing numbers for electronic payment
• Important dates, such as the Birth and Hire, for each and every employee

The same goes if you are preparing to pay State levies, with the addition of the following-

• The account number for your state
• SUI or State Unemployment Insurance Rates
• The correct timetable to complete Deposit and Payment details for state fee payments

How to Setup Federal Tax Withholding in Accountant Software

Now, assuming that your checklist is complete, Given below are the steps to do so:

Step 1 – Access the Tax Center in Finance Software- you can find it on the left in the menu bar.  

Step 2 – Open the Payroll Tax Center. Select “Payroll Tax”.

Remember that sales levy can also be tracked in the Online version.

Step 3 – Check all the settings in Payroll Taxes Setup for consistency such as the important dates and other required information of the employees. This is where the birth and hire dates that you had kept for reference are going to come in handy as you Setup Account Software Federal Tax Withholding.  

Step 4 – Add your business information. Some of the details to be filled in are-

1. The legal name of your company entered on each return filing.
2. The address that you entered for your business during payroll setup will automatically show based on records. If you want to change your address then in place of ticking the box you will see the corresponding field to enter this data in.
3. The date at which you are planning to run the first payroll. This is very important if you want to track all of your payments correctly.
4. Date of hire for the first employee, which is to check when you have started hiring employees.

Step 5 – Enter all the required information for FT. This includes the FEIN and any forms that needed to be filled to complete this procedure. In case you do not have the FEIN as of now, then click on “No”. It is necessary to have one if you want your business to get credit for payment of surcharges, however, so make sure that you do.

Step 6 – Add information about your state. This step may be skipped for people in one of the seven states where this is not needed. Otherwise, enter details like the employer account number, SUI, ETT etc. for the state in particular.

Step 7 – Select the options for setting up your mode of payment- you can choose from E-filing and E-pay or manual payment. This step may not be available to you if you have QuickBooks Basic Payroll.

Now you can proceed to pay the resulting amount by selecting the “Pay taxes” option. If you ever want to adjust the settings that you made in the above steps, then simply go to the respective settings and make your changes.

Account Cares and its team are here to handle your concerns or problems with respect to Finance Software. If you are not ready to Setup Federal Tax Withholding, then we can do it and save you some time as well.

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