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How to Setup a New Payroll Tax Item or a Payroll Liability Item

Create New Payroll Tax Item

If this is a tax your employee will pay (money comes out of their check but the company does not match it), you will need to create a Tax Item. Here is how:

From the Payroll Items form, click Payroll Items > New Payroll > Tax Item

Populate the various fields using the image below as an example. Click OK when you are ready to save your changes.

Create New Payroll Employer Liability Item

If this is a tax your company will pay (employee does not pay it), you will need to create an Employer Liability Item. Here is how:

From the Payroll Items form, click Payroll Items > New Payroll > Employer Liability Item

Populate the various fields.

Click OK when you are ready to save your changes.

When a Tax Does Not Exist in Total Office Manager Payroll

Total Office Manager includes thousands of federal, state, county, and city payroll taxes. The rates, rules, and calculations are built into what we call the Payroll Tax Tables. We update the Payroll Tax Tables on a regular basis. This is part of the payroll feature.

If you do not find a certain tax in Total Office Manager, you will need to create your own. Here is a step by step on how to create a payroll tax.

Open the Payroll Items List by clicking Employees > Lists > Payroll Items List

To Do: This section is missing steps.

Payroll Setup Tips

  • Please remember to add payroll items to each of your employees.
  • Always use the Tax Tables when the tax you are looking for is available in it.

Related Payroll Setup Topics

Employee Payroll Items – Taxes Tab

Employee Payroll Items – Time Off Tab

Payroll Taxes by City or Local Municipality