Implement the Percent of Wages Method for Withholdings

You implement the Percent of Wages method in the Employee hub.

Prerequisite: Before you specify employee withholdings, you must establish enterprise-wide withholding codes in Payroll Withholding Setup.

To use the percent of wages tax locale method to determine withholdings:

1. On the Navigation menu, click Hubs > Employees.
2. Open the employee record and click the Payroll tab of the Employee hub form.
3. Enter information on the Withholdings grid. Consult the Tax Facts sheets for information about applicable withholding fields and settings. The information required in the Withholdings grid depends on the type of withholding.

   If your enterprise uses the Follow Project Locale method to determine an employee's withholdings, DPS ignores entries in the Withholdings grid and uses the Payroll Tax Locale specified in the posted timesheet for withholding information.

4. In the Locale Method field, select % of Wages. Each state or local withholding entered in the Withholdings grid appears in the State/Local Tax Jurisdictions grid.
5. Select the Active option for each withholding in the State/Local Tax Jurisdictions grid that you want to use for future payroll runs.
6. Enter the percent of total taxable wages for which you want the withholding to apply, for each withholding that appears in the grid. The total of all withholdings must be 100%.
7. Click Save.