Maintaining Tax Rates

You can maintain federal tax rates, state tax rates for Nevada and NY, and limit rates used to calculate payroll for a specific year with the Tax Rate Maintenance form.

Setting Federal Tax Rates

Complete the fields as required in the Tax Rates panel.

Field	Description
Year	Four-digit calendar year when the federal tax rates are in effect.
OASDI Rate	Annual Old Age, Survivors, and Disability Insurance (OASDI) rate for the year, including the decimal point. For example, enter 6.2% as .062.
OASDI Limit	Annual taxable OASDI limit for the year in total dollars.
Medicare Rate	Medicare rate for this year, including the decimal point. For example, enter 1.45% as .0145.
Med Tier 1 Limit	Medicare tier 1 rate limit.
FUTA Rate	Federal Unemployment Tax Act (FUTA) rate for this year, including the decimal point. For example, enter 6% as .060.
FUTA Limit	FUTA limit for the year in total dollars.

Configuring State-Specific Tax Rates

Configure certain state tax rates for New York, Nevada, and Puerto Rico in the fields below the Tax Rates panel.

Note: If you are entering New York SDI Tax information, see the Setting up the New York State Disability Insurance Tax article in the Customer Resource Center for complete information.

Field Name	Field Description
Default Nevada Modified Business Tax Rate	Sets the default rate (both accrual and billing) for the State of Nevada business tax.
New York SDI Max Per Week	Amount deducted each week from an employee who lives in New York.
New York SDI Percent	New York taxable gross rate.
New York SDI Employer Rate (EE/Month)	New York employer taxable gross rate (calculated for each employee). Note: This amount occurs in full on the first payroll of each month.
Allow Override by Client	Allows overrides of the NY SDI tax.
Puerto Rico Chauffeur Tax (EE) Per Week	Employee rate for this tax. Note that the Puerto Rico Chauffeur Tax is not calculated by Vertex and must be manually maintained. The tax is triggered for the employee based on a Job Code that is assigned on the Employee Master form.
(ER) Per Week	Employer rate for the Puerto Rico Chauffeur Tax.

Note: The Puerto Rico Chauffeur Tax is not calculated by Vertex and must be manually maintained. The tax is triggered for the employee based on a Job Code that is assigned on the Employee Master form.