Top PeopleSoft Jobs

Saturday, August 14, 2010

Question:

In the Earnings Setup (Taxes page), there are two check boxes "Subject to FWT" and "withhold FWT" under the US ONLY group box.could you please explain the significance between the two checkboxes? How does it affect the earning code?
Answer:



When you setup an Earning Code, you need to see if the earnings is taxable; If the Earning is taxable and taxes are to be withheld from Employee's paycheck, then you would need to select appropriate properties during an Earning Code Setup. Most of the earnings are defined with both Subject to FWT and Withhold FWT selected.



• Subject to FWT means the earnings is part of taxable gross.
• Withhold FWT means federal income tax on the earnings must be withheld at the time of payment.

If Subject to FWT is checked, but the Withhold FWT is NOT checked, it means that, the earnings are taxable, but when pay calculation is run, payroll will not take out taxes from that earnings;

If Federal tax is not withheld because Withhold FWT is not selected on the Earnings table and the State tax is not withheld because Withholding Follows Fed Rules is selected on the Taxable Gross Definition Table page..


Share/Save/Bookmark

Read more...

About This Blog

Have you got a PeopleSoft Question? Post it in the forums section or in your preferred place or in comments section, so that we can answer it for you in detail with screen shots;

Learn PeopleSoft functionality and how to use the setups and process flow offered in different modules;

Hope this would give you some ideas...

Blog Archive

  © Blogger template On The Road by Ourblogtemplates.com 2009

Back to TOP