Help:PY1-Standard Rates File Maintenance
This window titled Standard Payroll Rates displays the standard rates and limits for FICA, Medicare, & FUTA taxes which will be used by the system during the payroll calculation process.
NOTE: The rates and limits in this file will be pre-set by Direct Systems on all new IBS Systems. We will update this file at the end of each calendar year when our annual year-end updates are distributed to all customers who are current on support. You may also update these rates and limits manually, if you so desire.
The FUTA rate and limit which are included in this file from Direct Systems is the standard rate/limit used by most employers. However, it is our understanding that the FUTA rate and limit can vary by employer. Therefore, if your FUTA rate/limit is different, then you must update the FUTA rate/limit in this file, as appropriate for your company. The Federal, State, and Local tax table calculations are maintained by Direct Systems, Inc.
FICA Rate: Enter the current FICA (Social Security Tax) rate to which the employee is subject. NOTE: 6.2 % is entered as 6.20.
FICA Earnings Limit: Enter the current limit of earnings which are subject to the FICA (Social Security) Tax.
Medicare Rate: Enter the current Medicare Tax rate to which the employee is subject. NOTE: 1.45% is entered as 1.45.
Medicare Earnings Limit: Enter the current limit of earnings which are subject to the Medicare Tax. Currently there is no earnings limit for the Medicare tax, so set this field to 999,999,999.
FUTA Rate: Enter the current rate for your company's FUTA (Federal Unemployment) Tax. This is used for the various Federal FUTA Liability reports found on the Reports Pull-Down Menu. NOTE: The IBS Payroll System does not withhold FUTA Tax; however, it can provide you with Federal FUTA Liability Reports (Monthly, Quarterly, Yearly) which calculate your Federal FUTA liability.
FUTA Earnings Limit: Enter your company's limit of earnings which are subject to the FUTA (Federal Unemployment) Tax. This is used for the various Federal FUTA Liability reports found on the Reports Pull-Down Menu. NOTE: The IBS Payroll System does not withhold FUTA Tax; however, it can provide you with Federal FUTA Liability Reports (Monthly, Quarterly, Yearly) which calculate your Federal FUTA liability.
[ Save ] Press this button to record the information displayed on this window in the Payroll Standard Rates File (PY1D02.TPS).
[ Cancel ] Press this button to close this window and return to the previous window. NOTE: If you make any changes in this window and then press the [Cancel] button to ignore those changes, then another window titled Save Record will open which asks "Do you want to save the changes to this record?". For additional information, please see Save Record.
[ Help ] Press this button (if available) or the F1 key to view the Help text for this window.
