Defining the North Carolina Reserve Fund

 

Company Level Code defining the Reserve tax (Percentage Based)

 

 

The XYZ Company sets up the North Carolina Reserve Fund code as follows:

Lets examine it in detail.

Field	Value	Comments
ID	83	The number assigned to this Code is determined by the user who created it. The only limitation is that they be between 80 and 89 due to the fact that these codes have been especially set up in CCS Payroll for State and Local taxes.
Description	NC Reserve Fund	The letters RESERVE are required. Any other additional description is optional.
Category	X	Employer Tax
Type	02	Percent of Gross
Frequency	0	Every Pay Period
Amount	.02	Enter the applicable Percentage
Limit	3.34	The Limit field is based on a yearly limit -- for 2005 the base wage limit was $16,700
Balance	0.00	Not required for a tax type code.
Tax Entities	All checked	This Code is not a pre-tax deduction as far as these withholding taxes are concerned.
Global	UnChecked	If all employees of the Company are considered for this taxation click the Global box, otherwise assign it specifically to those employees who the tax is applicable to.

 

Note: You may not need to set this tax up. The reserve fund is combined with your SUTA tax (code 93) and reported as a single tax on your NCUI 101. If you pay SUTA taxes to only one state and pay your taxes on time, then splitting this tax into the two separate componets (UI and Reserve) are not required. You need only separate these taxes, when you will file a 940 (not a 940EZ), since the "reserve" portion of the tax does not count towards your FUTA credit.

 

If you wish to make the payment of this tax 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.