Tax codes (form) 6.2 CU7 and prior

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

 Click Payroll > Setup > Taxes > Tax codes.

This topic describes how to provide required information about the tax codes that you use for payroll processing.

You do not have to create tax codes because a tax code is provided for every payroll tax that is supported by Microsoft Dynamics AX. You only provide information about how your organization uses the tax codes. When you assign a tax region to a worker, the tax codes that are required for that worker in that region are automatically assigned to the worker. You can then use the Worker tax codes form to set up the tax parameters that are specific to each worker. For more information, see Worker and position payroll tasks.

Nota

This topic includes information about features that were added or changed for cumulative update 7 or later for Microsoft Dynamics AX 2012 R2. This information also applies to AX 2012 R3.

The following taxes are not supported by Microsoft Dynamics AX:

• Employer head taxes – Taxes that are not based on a payment, but that are calculated on the number of employees paid over a certain period of time.

• Employer percentage of payroll taxes – Taxes that are not calculated based on a payment, but that are calculated on the amount that is paid to employees over a certain period of time.

• RRTA taxes – The employee part of the Railroad Retirement tax.

• Employer RRTA taxes – The employer part of the Railroad Retirement tax.

• Employer RUIA taxes – Railroad unemployment taxes that are paid by the employer.

• SUTA surcharges – Although base state unemployment taxes are supported, individual surcharges are not calculated independently. You must increase the defined base SUTA rate to cover the calculation of any SUTA surcharges and list the amounts manually when you file.

• Ohio JEDD taxes – A type of local tax in the state of Ohio that is managed by the Joint Economic Development Districts.

There might be other taxes that are not supported by Microsoft Dynamics AX. To verify whether a tax is supported, see the tax codes that are delivered with the system or contact product support. Because legislative changes can also change which taxes are supported, changes are noted in the release documentation for each tax update.

You can create as many versions of the data for each tax code as you need. Only one version can be effective in a legal entity at the same time. This form always displays the version that is currently in effect for the legal entity that you selected.

Nota

This topic describes functionality that is available only if the Payroll - USA configuration key is selected.

Tasks that use this form

Tax information tasks

Form-level controls

Button	Description
Maintain versions	Open the Tax code date manager form, where you can create date-effective versions of each tax code.

Fields	Description
Tax code Description Country/region	These read-only fields provide information that is built into the tax code. Nota The description of the tax code is printed on pay statements and other reports. If this description should not be printed, enter a different description in the Report description field on the General tab.
Lock pay statement	If this check box is selected, tax lines that are related to this tax code cannot be modified on pay statements. This information is built into the tax code. It cannot be changed.
Employer tax	If this check box is selected, the tax is an employer tax that is paid by the employer. If this check box is cleared, the tax applies to the employee and is withheld from the employee’s gross pay. This information is built into the tax code. It cannot be changed.

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Tax code details

Use the Tax code details FastTab to set up and select settings for each tax code that your organization uses. If a tax code is used by more than one legal entity in your organization, you must set up the tax code for each legal entity.

Nota

For many tax codes, all the fields on the General tab are blank. We recommend that you review all settings, which includes those on the Accounting tab, to verify that a tax code has been set up for a legal entity.

Field	Information
Legal entity	When this form opens, the current legal entity is automatically selected. You can select a different legal entity to enter or review tax code details for that legal entity.

Tax code details: General tab

Fields	Information
Report description	To overwrite the description of the tax code that appears on reports, such as printed pay statements, enter the new description here. To use the default description that is built into the tax code, leave this field blank.
Account ID	Enter the account number that the legal entity has with the taxing authority. State income taxes always have an account ID. If the taxing authority has not specified an account ID, leave this field blank.
Wage base	Enter an amount only if the taxing authority has instructed you to enter a value in this field. Otherwise, leave this field blank.
Rate	For unemployment taxes and certain other taxes, enter the rate that the legal entity pays. For example, if the rate is 2.5 percent, enter 0.025. If the taxing authority has not specified a rate, leave this field blank. Precaución Although base state unemployment taxes are supported, individual surcharges are not calculated independently. You must increase the defined base SUTA rate to cover the calculation of any SUTA surcharges and list the amounts manually when you file.

Tax code details: Accounting tab

Additional fields might appear in this tab, depending on how financial dimensions are configured for the legal entity.

Fields	Information
Vendor	If you enter the taxing authority that the tax for this tax code is paid to, an invoice will be created for the tax amounts, payable to the selected vendor. If you leave this field blank, the amount of the tax liability remains in the main account that is specified.
Project category	If the tax code is used for employer tax transactions that are posted to a project instead of to the general ledger, select a project category. If a tax code must be posted to a project, you must specify a project category on the tax code line before you can generate a pay statement. Nota This field is never used for taxes that are paid by the worker.
Default financial dimensions	The default financial dimensions for the main account. When you select a financial dimension value, the Where the %1 dimension is used field group displays where the dimension is used in account structures and advanced rule structures.
Main account	For employer taxes, employer tax transaction costs are posted to the main account. For employee taxes, the withholding liability is posted to the main account. This account is used for all transactions that are related to this tax code and legal entity.

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Reporting

Fields	Description
Form W-2 box number Form W-2 box label	These read-only fields provide information that is built into the tax code.

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Tax groups

This control is not available in versions of Microsoft Dynamics AX 2012 prior to cumulative update 7 for AX 2012 R2.

Fields	Description
Tax groups Description	The name and description of the tax groups that include the selected tax code.
Enable posting definitions	Each tax code can belong to only one tax group that is enabled for posting definitions. Sugerencia If a payroll tax is not being posted as expected, it could be because the wrong tax group is enabled for posting definitions. Another possibility is that the tax code has been assigned to a separate posting definition by using the Table code in the Definiciones de contabilización de transacción (formulario).

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See also

Worker tax codes (form) 6.2 CU7 and prior

Tax groups (form) 6.2 CU7 and prior

Definiciones de contabilización de transacción (formulario)

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