Taxes for the staffing supplier are configured within the Tax tab of Admin Tools. Additional tax information can be viewed here, such as the federal and state unemployment limits. The following configuration is performed on this tab for a staffing supplier:
By default, Avionté provides the Federal Unemployment Tax (FUTA) tax rates. For other tax rates, such as state unemployment insurance (SUI), your site will need to enter those that are applicable.
Note: Be careful when setting up miscellaneous SUI tax rates so that SUI taxes are not duplicated in different rate setups. If two SUI tax rates include the same particular tax, adjust one or both of the rates to account for the duplication so the taxes are not applied twice.
- To enter a new tax rate, click the Add New button on the Tax Rate tab.
- In the Tax Rate Details group box (lower-left corner of the window), set the fields as follows:
Field Description Additional Information Tax Name Select the appropriate tax. To quickly find a particular tax, begin entering the first few characters of the tax name if known and press Enter. A list will display with results that match the current entry. As you enter additional characters, the list becomes more refined. Tax Percentage Enter the tax rate percentage. This rate is set by your state's unemployment office. Start Date/End Date The start and end date for the SUI tax are given by the state. They’re usually a year in duration and the SUI tax will be calculated during payroll from the start date till the end date specified in these fields. Dates can be entered either manually by typing in the date in the format MM/DD/YYYY or by selecting the date from the calendar that appears in the drop down calendar.
- Click Save once the fields are complete. The tax is displayed in the upper grid.
- The taxes that appear in the grid can be filtered by using the Filter By drop-down menu which appears in the upper-right corner of the windows. Only those taxes that are active during the date selected in the drop-down calendar will appear in the grid.
Notes Occasionally, our clients will receive SUI Rate changes during the middle of the year. Often times these SUI rate changes will be retroactive to the first of the year. Please let the Tax Team know of these situations, as we can recalculate SUI taxes for them. If a new rate is received, advise our clients to add a new rate, rather than changing the start and end dates on existing rates. This will allow them to use the Filter By feature at the top right hand side. It will also allow them to look at rates historically.
Recalculate Tax Amount
When tax rates are changed, some current pay-period taxes may have already been accrued according to the previous rate.
- To recalculate existing accrued taxes to reflect a changed rate, select the row of the changed tax from the main Tax table (WI SUI ER in the example below.)
- Select the Recalculate Tax Amounts button.
(Alternatively, when a tax rate is changed, the system will automatically prompt for a recalculation of currently accrued taxes.)
3. When a recalculation is started, a confirmation prompt will appear. Select Yes to continue.
4. The Tax Percentage column in the upper Tax grid will now reflect the change. The Tax Recalculation History grid in the lower-right of the page will display the history of changes to the selected tax, including the Rate Percentage the rate was changed to.
The Employer Identification Number (EIN) is a nine-digit number used for banking and filing taxes and is assigned to your company from the state or states in which you do business. Your site will need to configure taxes to include EINs for each of the SUI and state withholding taxes that apply.
- In Admin Tools' Employer Tax option, click the Tax EIN tab.
- From the list of taxes, select the tax that applies.
- In the EIN field found in the Tax EIN Details group box, enter your company's account number.
- Click Save.
- Repeat these steps for all taxes that are applicable to your site.
Tax Reciprocal Treatment
The following steps describe how tax reciprocities are configured if your site places employees in other states and those states provide tax reciprocity agreements. Typically, these treatments are already accounted for within the system, but if additional treatments need to be set up, Avionté performs these configurations on this tab, thus the following is for informational purposes.
- In Admin Tools' Employer Tax option, click the Tax Reciprocal Treatment tab. If any additional reciprocal treatments have been configured, they will appear in the grid in the upper portion of the window.
- Click the Add New button if you are adding a new treatment, or select a treatment to edit.
- In the Tax Reciprocal Treatment group box, edit the fields as follows:
Field Description Resident Tax State or locality in which an employee resides. Work Tax The state or locality in which that employee works. Active Indicates whether the treatment is active in the system. NR_CERT This indicates whether the treatment is a non-residency certificate. RECIP_TREATMENT Indicates whether to use the reciprocal treatment.
- Click Save.
Tax Staffing Supplier
The Tax Staffing Supplier tab is used by Avionté to define the specific calculation method procedures used for calculating taxes. If any changes are required, Avionté performs the updates on this tab.
The Tax Master tab displays a current master list of all taxes in Avionté. The list includes the Is Active checkbox which indicates whether that tax is active at your site. You can also change the Display Name for a tax in the lower portion of the screen by entering the name and clicking Save.