The Tax Parameters screen provides a centralized view of your company's tax setup, including account information, tax rates, and filing frequencies. Based on the tax jurisdiction and your organization's configuration, administrators can update items such as:

• State Unemployment Insurance (SUI) rates
• Employer tax account numbers
• Tax deposit frequencies
• Other state-specific tax setup parameters supported by Payroll

It is important to keep this information accurate and up to date to help ensure tax filings are processed successfully and to avoid potential filing delays or rejections during quarter-end and year-end reporting periods.

Navigating to Tax Setup Parameters

1. Expand Setup from the side menu in Payroll.
   
2. Click Tax Parameters.
    

Updating an Existing Tax Parameter

To change the value associated with a current record:

1. Locate the tax parameter you want to update.
2. Select Edit.
3. Update the parameter value.

Important! Double-check the entry you made to ensure it is accurate to avoid potential filing delays or rejections during quarter-end and year-end reporting periods. Any penalties or fees resulting from incorrect entries will be the responsibility of your company.

4. Review and acknowledge the required legal statement.
5. Save your changes.

FAQs

How do I add a new state to the Tax Parameters screen?

This list is generated from the addresses associated with your Locations. If you are starting work in a new state, you must add that location in ExakTime using a valid address. Please note you are responsible for establishing the necessary tax accounts and entering the required information here.

For more information on the setup required for new tax jurisdictions, see here:https://support.arcoro.com/hc/en-us/articles/35857774502811-Setting-up-an-Employee-in-a-New-Tax-Jurisdiction-for-Payroll

Only your company's authorized signatory may complete and sign the required forms. Some authorization forms cannot be completed until the state account number has been received and entered into the system.

What happens if I haven’t received the applicable account number/details from the state agency?

If you have not yet received an account number from the state agency, select the "Applied For” setting. This setting indicates that the required information, such as a state tax account number, has been applied with the agency but has not yet been issued.

Using the "Applied For" status helps prevent delays in payroll processing.

Once the account details have been received from the agency, return to this screen and update the information promptly. Employers are responsible for completing the state registration process and maintaining accurate account information. Failure to provide required account numbers in a timely manner may result in penalties, interest, or delays in tax reporting and compliance.