Setting Up PR Deductions and Liabilities

The PR Deductions and Liabilities setup is for managing payroll deductions and liabilities accurately. This setup ensures that all federal, state, and local deductions and liabilities are correctly configured, which is essential for compliance and financial accuracy.

Before you start

• Understanding of federal, state, and local tax requirements.

Steps

1. Access thePR Deduction Liabilityform to view and manage all federal, state, local, employee, craft, and insurance deduction liabilities.
2. Ensure each deduction and liability code is associated with the correct GL account for accurate financial tracking.
3. Use thePR Federal Infoform to link federal categories with specific deduction and liability codes, adjusting only when federal laws change.
4. On thePR State Informationform, link each state with the corresponding tax deduction code and state unemployment liability code.
5. Utilize thePR Local Codesform to set up county, city, or school district payroll taxes, linking them to deduction codes as necessary.
6. Populate the Basis Codes tab on thePR Deduction Liabilityform to determine taxable wages by summarizing wages and pre-tax deductions.

Notes

• Failure to populate the Basis Codes tab will result in deductions or liabilities not calculating.
• Ensure all GL accounts are correctly assigned to avoid financial discrepancies.