Summary

Shift codes are premiums that can be attached to time card line items. Just like premiums, the level breaks on the shift codes depend on the number of months the employee has been employed based on the anniversary date (PR> Maintenance> Employee> General tab> Anniversary Date field). If the shift code should apply equally to all employees, you can create a single level break that will apply the same to all employees.

A shift code can be set up as an hourly amount, percent and flat amount.

• Hourly Amount – flat amount added to each hour attached to the time card line item. For example, if the graveyard shift should make an extra $0.50 per hour, you can create an hourly amount shift code for $0.50.
• Flat Amount – flat amount added to the time card line item despite the number of hours on the line item. For example, if a shift should make an extra $25 dollars for working on a weekend, you can create a flat amount shift code for $25. The $25 will be applied to the time card line item despite the number of hours on the line item.
• Percent – percentage amount added to the total amount of the time card line item. For example, if the graveyard shift should make and extra 5% per hour, you can create a percentage amount shift code for 5%.

When the shift code is attached to a timecard line item, the shift code level break is selected based on the period end date on the check, not the timecard date on the line item. For example, assume there are two level breaks on the shift code, one for employees that have been employed from more than a year and one for employees that have been employed for less than a year. As long as the period end date on the paycheck occurs after the anniversary date of the employee, the higher level break on the shift code will apply to all of the timecard line items on the paycheck.

If there is a rate code attached to a timecard line item, the shift code will be applied after the rate code. For example, if you attach an hourly amount shift code to a timecard line item, the hourly rate on the rate code will be applied to the timecard line item, and then the shift code will be applied to the modified amount.

If there is a premium attached to a timecard line item, the premium will be applied to the base amount on the timecard line item, not the base amount plus the shift amount. For example, if an employee qualifies for a longevity pay premium that is a percentage amount (1%), the 1% will be applied to the base timecard amount, not the timecard amount plus the shift code amount.

• Premiums are attached to employee records using the Employee Maintenance window (PR> Maintenance> Employee> Premiums tab).

Step by Step

1     View the current tax table.

• Open the Tax Table window (PR> Maintenance> Tax Table).
• The Tax Tables window will display all of the tax tables created in the database.
• Click the vertical ellipsis and select Export grid contents to Excel if you would like to create a report of the tax table and the standard deductions attached to each tax code and status.
• Select a tax table and click EDIT to open the selected tax table.
• Select a tax table and click DELETE to delete the selected tax table.
• Select a tax table and click COPY to create a copy of the selected tax table.
• Click ADD to create a new tax table. This will open the Create Tax Table window.

2     Create or modify a tax table.

• The General tab is used to specify the general tax table details.
  • The Code field should be FED, STATE, OTHER or a specific retirement code. The Code field is a super deduction and determines which drop-down menu on the Employee Maintenance window the status will display in. For example, if you are creating a state tax table entry for employees that are single, enter STATE in the Code field and enter S in the Status field. When you attach the status to the employee record using the Employee Maintenance window (PR> Maintenance> Employee> Taxes tab), the S status will display in the State Status field. If the code is not typed correctly or you enter an incorrect code, the tax table entry cannot be attached to the employee record.
    • Unlike other code fields in the Springbrook application, the tax table Code field does not have to be unique to each line item entry. This allows you to have more than one status for each tax code, but the combination of the code and status fields must be unique. For example, you cannot have two Single statuses attached to the FED code.
  • The Description field is used to enter a description of the tax table line item. The description can be up to 30 alphanumeric characters long.
  • The Status field usually falls into the standard categories of single (S), married (M), head of household (H), supplemental tax (ST) or miscellaneous (X).
    • The X status is often used for different taxing purposes such as bonus checks.
    • There can be multiple tax status options tied to a tax code, but the Status field must be unique to each the tax code.
    • The Status code should be two alphanumeric characters.
    • The ST is used for a supplemental tax code.
      • A supplemental tax code will overwrite all other tax codes on employees when payroll is calculated using the Computer Checks process (PR> Computer Checks> Calculate if the Use Supplemental Tax Codes toggle).
      • The supplemental tax code applies a flat percentage amount to the calculated payroll.
      • You can create only one supplemental tax code.
• The Revisions and Revision Tax Rates sections will display the details associated with each revision on the tax table.
  • Click CREATE to add a new revision line. This will open the Settings section to the right.
  • The Federal Exclusion, Minimum Income, Withholding Allowance, Tax Credit , Other Deduction, and Standard Deduction fields should be updated annually and completed based on the federal or state tax code.
    • The value in the Minimum Income field will be applied to the annualized federal gross on the paycheck.
    • The Standard Deduction field is the amount used in the 2022+ W-4 calculations IF the employee does not check the Multiple Jobs box in Step 2.
  • Check the Multiply standard deduction toggle if you would like the value in the Standard Deduction field to be multiplied by the number of dependents on the employee record.
  • Multiply withholding allowance
  • Check Multiply tax credit toggle if you would like the value in the Tax Credit field to be multiplied by the number of dependents on the employee record (PR> Maintenance> Employee> Taxes> Federal Dependents, State Dependents, Regional Dependents, Other Dependents fields).
  • Check the Multiply other deduction toggle if you would like the value in the Other Deduction field to be multiplied by the number of dependents on the employee record.
  • Check the Round to nearest dollar toggle if you would like to round the tax values to the nearest dollar value.
    • When checked, tax values for the selected revision will round up to the next whole dollar from $0.50 and round down to the previous whole dollar from $0.49 when calculated.
• The Revision Tax Rates section
  • Click CREATE add a tax table rate line. This will create a line item in the Revision Tax Rates section.
    • The Level column is the income level that the tax table line will be applied to. For example, enter 0 if the tax should be applied on the first dollar.
    • The Percentage column is the tax rate applied to the line item and it can be up to four decimal places.
    • The Minimum Tax column is used to enter the minimum tax amount on the line item. When taxes are calculated, the minimum amount will be added to the total tax amount due. For example, if a tax table line item has a rate of 10% and a minimum tax of $1500, the 10% rate will be applied to the check amount and then the minimum amount will be added.
      • (Wages * .10) + $1500 = Tax Amount Due
      • Tax Amount Due/Pay periods per year on employee record = tax deducted on check
      • For more information on how taxes are calculated, see the document on payroll taxes.
• Highlight a revision and click DELETE to delete the selected line item.

3     Complete the Miscellaneous tab.

• The Miscellaneous tab allows you to build your own tables of data if there is information you want to track. This information is optional and user-defined.
• Miscellaneous field labels are maintained on the Miscellaneous Field Label Maintenance window (SS> Utilities> Miscellaneous Field Labels).
• Click the Save button when the tax table revision is complete.