Defining Massachusetts Worforce Training and Health Ins. Tax

 

Company Level Code defining the WF Deduction (Percentage Based)

The XYZ Company sets up the WF (Workforce Training) code as follows:

• For 2003, the WF wage base is $10,800.
• The WF rate is .075%
• The maximum per tax year is $8.10. ($10,800 x .075%)

One Company Level Code is required to automate the WF as detailed above.

Lets examine it in detail.

Field	Value	Comments
ID	80	The number assigned to this Code is determined by the user who created it. The only limitation is that they be between 80 and 84 due to the fact that these codes have been especially set up in CCS Payroll for State and Local taxes.
Description	MA Workforce Training	The text WF, Workforce, or Training are required here. Any other description is optional.
Category	X	Employer Tax.
Type	02	Percent of Gross
Frequency	0	Every Pay Period
Amount	0.075	For 2003 the rate is .00075 or .075%
Limit	8.10	For 2003, the wage base limit is 10,800 so 10800 x .075% = 8.10
Balance	0	No Balance is required for tax codes.
Tax Entities	All checked	This tax is not a pre-tax deduction to any other tax.
Global	Checked	Massachusetts Employers are liable for this tax.

 

Company Level Code defining the HI Employer Tax (Percentage Based)

The XYZ Company sets up the HI code as follows:

One Company Level Code is required to automate the HI tax as detailed above.

Lets examine it in detail.

Field	Value	Comments
ID	81	The number assigned to this Code is determined by the user who created it. The only limitation is that they be between 80 and 84 due to the fact that these codes have been especially set up in CCS Payroll for State and Local taxes.
Description	MA - Health Ins. Tax	The text Health are required here. Any other description is optional.
Category	X	Employer Taxes
Type	02	Percent of Gross
Frequency	0	Every Pay Period
Amount	0.12	For 2003 the tax rate is .12%
Limit	$16.80	For 2003, the base wage limit is $14,000. So 14000 x .0012 = 16.80
Balance	0	No Balance is required for tax codes.
Tax Entities	All checked	This tax is not a pre-tax deduction to any other tax.
Global	Checked	Massachusetts Employers are liable for this tax.

If you wish to make the payment for these taxes via the CCS Payroll Program, add the necessary banking information by clicking on the Bank button. Remember to click the "Show Address" checkbox and fill in the agency name & address if you will be paying with a paper check. Also click on the Multiple Weeks checkbox unless you want each pay period's line item listed separately.

Note: If you pay SUTA taxes to more than one state, you will need to assign these codes specifically to those employees that are subject to this tax, and un-check the Global option.

 

The example above is for Massachusetts employers; however, the CCS Payroll program has the ability to incorporate and handle any state or local tax requirement.