To add or edit an employee, go to Employees > Employee Setup. Employee information must be entered before any payroll information can be produced for that employee. By default, employees are listed alphabetically by Last Name; use the column headers to sort employees by First Name or Employee Code, or choose an Employee Code to select a specific employee.
NOTE: The links under Help > Web Links > Homeland Security provide access to various U.S. Department of Homeland Security websites to assist employers in determining the employment eligibility of their employees.
Adding or Editing an Employee
The process for adding and editing employees is almost identical. The only difference is that when adding an employee, you must create a unique Employee Code.
To add an employee:
- Go to Employees > Employee Setup and click New.
- Enter an Employee Code.
- Employee codes are alphanumeric and can be up to 20 characters long. Use any desired method or pattern when assigning codes; however, Drake Software recommends using codes that are meaningful.
- Complete the following tabs:
- Personal Information
- Payroll Wages
- Payroll Options
- Federal Tax
- State Tax
- Local Tax
- Deductions
- Benefits
- Direct Deposit
- Notes
- Click Save after verifying the information on all tabs.
To edit an existing employee:
- Go to Employees > Employee Setup.
- Select the employee's name from the list or choose the applicable Employee Code.
- The employee's tabs are activated. Edit information as needed.
- Click Save when editing is complete.
Personal Information Tab
Enter the following Personal Information for the employee and Save when finished:
- (when setting up a new employee) Employee Code
- Employee codes are alphanumeric and can be up to 20 characters long.
- Use any desired method or pattern
when assigning codes; however, Drake Software recommends using codes
that are meaningful.
- For instance, instead of using the employee's SSN, you could use “JonesPaul.” By using a meaningful code, lines on reports that refer to this employee are easily identifiable.
- Identifying and demographic information (First Name, Middle Name, Last Name, Suffix, Country, Address, City, State, ZIP, Phone, and Email), as applicable
- Establishment ID - Used for identifying wages by worksite. This is required only if the client files Form BLS 3020.
- The Establishment ID is displayed in red text if the option Works at multiple locations is selected for the employee. A separate Establishment ID can be saved for each location.
- An NAICS/Class Code is required if using an Establishment ID; otherwise, the Establishment ID cannot be saved.
- Federal ID - Type of ID (EIN, SSN, ITIN, or OTH (other)) and applicable number. The number is formatted according to the type of ID selected.
- OTH is for any valid ID type approved by the IRS instead that is not an EIN, SSN, or ITIN.
- Date of Birth - Used to determine if the employee is over 18 and to figure catch-up amount eligibility for 401(k) contributions.
- Gender (Male or Female) - Used for certain state wage reports
- Date of Hire
- Employee Division - Used to determine which division the employee is a member of. Divisions are set up in Client > Add or Edit > Divisions tab.
- The Division is displayed in red text if the option Works at Multiple Locations is selected for the employee. A separate Division can be saved for each location.
- Employment Status - Used to determine the availability of employment information in the payroll function and state wage report. Statuses are as follows:
- Active - A regular, employed worker
- Statutory - Considered an employee per a statute. Statutory employee information is available in the payroll feature.
- The employer should indicate on the worker's Form W-2 that the worker is classified as a statutory employee. Statutory employees report their wages, income, and allowable expenses on Schedule C (Form 1040). Statutory employees are not eligible for self-employment tax because their employers must treat them as employees for Social Security tax purposes.
- For an exempt organization, the most common statutory employees are its officers. In addition, while not as prevalent in an exempt organization, the following workers are also statutory employees :
- A full-time traveling or city salesperson who solicits orders from wholesalers, restaurants, or similar establishments on behalf of a principal. The merchandise sold must be for resale (such as food sold to a restaurant) or for supplies used in the buyer's business.
- A full-time life insurance agent whose principal business activity is selling life insurance and/or annuity contracts for one life insurance company
- An agent-driver or commission-driver engaged in distributing meat, vegetables, bakery goods, beverages (other than milk), or laundry or dry-cleaning services
- A home worker performing work on material or goods furnished by the employer
- Terminated - An employee who has resigned or was let go. This selection activates the Date LWOP Taken field.
- Suspended Without Pay - Employee is on the company's payroll but does not receive a paycheck. This selection activates the Date LWOP Taken field.
- Payroll cannot be processed for an employee with this status.
- Suspended With Pay - Employee is barred from coming from work but is still on the company's payroll and receives a paycheck. This selection activates the Date LWOP Taken field.
- Payroll is still processed for an employee with this status.
- Leave Without Pay - Employee is on the company's payroll but is temporarily not receiving a paycheck due to an approved reason besides suspension. This selection activates the Date LWOP Taken field.
- Payroll cannot be processed for an employee with this status.
- NAICS/Class Code (North American Industry Classification System) - Used by some states to collect and analyze statistical data related to their economy, identifying the type or class of work done by the employee
- The employee's NAICS code is displayed on the Live and ATF Payroll screens and can be edited for each paycheck.
- The NAICS/Class Code is displayed in red text if the option Works at Multiple Locations is selected for the employee. A separate NAICS/Class Code can be saved for each location.
- Date LWOP Taken/Date Terminated or Date Suspended - Activated for employees with an Employment Status of Terminated, Suspended With Pay, Suspended Without Pay, and Leave Without Pay
- Employees with these statuses can be deleted at the end of the calendar year once all reports, payroll filings, and Forms W-2 and W-3 have been produced and distributed. An exception is if a business' fiscal year covers any period other than January 1 - December 31; in this case, employees paid during the fiscal year cannot be deleted until the end of the fiscal year. If the employee did not receive pay during the fiscal year, they can be deleted at any time.
- Has Healthcare - Flows to payroll screens. Some states require this information.
- Works at Multiple Locations - If selected, employee information must be added for each location.
- Combine Checks - A per-employee option for combining payroll checks. Appears only if the option Works at Multiple Locations is selected for the employee.
- For example, if an employee works in both Georgia and North Carolina, by default, one check is printed for Georgia and one for North Carolina. Selecting Combine Checks combines the Georgia and North Carolina checks onto a single check.
Payroll Wages Tab
Enter information about an employee's pay scale on the Payroll Wages tab.
- Pay Class
- Hourly - Employee is paid at an hourly rate.
- Hourly Exempt - Employee is not paid at an hourly rate.
- Salary - Employee is paid based on an annual salary.
- Salary Non-Exempt - Employee is paid based on an annual salary but can receive overtime pay.
- Commission - Employee is paid a commission with no hourly wage or annual salary.
- Sick Pay - Employee is currently receiving sick pay from a third-party. This selection activates the Date Sick Pay Started, Last Day of Month Worked, and % Sick Pay Paid by Employee fields.
- Pay Per Piece - Employee is paid for each thing made or event completed, not time worked. The employee can receive overtime pay.
- Officer Salary - Employee is an officer of the company and is paid based on an annual salary.
- Officer Hourly - Employee is an officer of the company and is paid based on an hourly wage.
- Officer Hourly Exempt - Employee is an officer of the company and is exempt from US DOL overtime laws.
- Pay Frequency - How often the employee is paid. This information determines the default value of Regular Hours for hourly employees in Live and ATF Payroll. It also determines how the employee's annual salary is divided and displayed in the Salary field when processing payroll.
- For instance, if Weekly is selected, the annual salary is divided by 52 in Payroll; if BiWeekly is selected, the annual salary is divided by 26.
- To enter a different pay amount each pay cycle for a salaried employee, selecting Zero from the Pay Frequency list, then enter 0.00 as the Annual Salary. A selection of Zero allows you to enter everything manually on the payroll screen (other than the Rate). Zero indicates it is not known how many checks the employee will receive per year and, therefore, the yearly gross income is unknown.
- Annual Salary - Salary is divided by the Pay Frequency selection, determining the amount of each payroll check.
- This field is available only if the Pay Class is Salary, Officer Salary, or Salary Non-Exempt.
- Default Hours Per Pay Period - Determined by the Pay Frequency selection but can be edited as needed for individual employees.
- Print Regular Hours on Check Stub - Available for non-salaried employees only. When selected, regular hours are printed on the employee's check stub.
- Use US DOL Rules to Calculate Payroll - Can be selected on a per-employee basis, overriding the global option Use US DOL Rules to Calculate Payroll at Employees > Options > Payroll Options tab. See the U.S. Department of Labor website for information about this calculation method.
- Adhere to State/Local Minimum Wage - Compares each value (State
Minimum Wage and Local Minimum Wage) and automatically incorporates the
highest amount into payroll calculation.
- If an amount lower than the
assigned minimum wage is entered into payroll, a blue validator appears
and automatically adjusts the payment amount.
- Can be selected on a per-employee basis, overriding the global option Adhere to State/Local Minimum Wage at Employees > Options > Payroll Options tab.
- Overtime Factor - Percentage of the hourly wage the employee receives for working overtime. The default value is time-and-a-half (1.50).
- Holiday Factor - Percentage of the hourly wage the employee receives for working on a holiday. The default value is double-time (2.0).
- Pay Rate Per Piece - (if the employee is paid by production levels (how many products they produce)) The wage the employee receives for each product (piece) produced
- Pay Per Piece PFD (personal needs, fatigue, and unavoidable delays) - PDF allowance for per-piece employees
- This field is available only if the Pay Class is Pay Per Piece and Use PFD with Piece Work is selected on the Payroll Options tab.
- Date of Pay Raise - Date the employee's pay raise became effective. Paychecks for dates prior to the Date of Pay Raise use the old, most recent rate.
- On Sick Leave - Employee is on sick leave and is receiving third-party sick pay. Activates the Date Sick Pay Started, Last Day of Month Worked, and % Sick Pay Paid by Employee fields. If the Pay Class is Sick Pay, the option On Sick Leave is unavailable, and the fields Date Sick Pay Started, Last Day of Month Worked, and % Sick Pay Paid by Employee are active by default.
- Date Sick Pay Started - Date employee began receiving third-party sick pay.
- Last Day of Month Worked - Last date the employee worked before becoming entitled to receive sick pay.
- % of Sick Pay Paid by Employee
- Employee Pay Rates (Rates) (for employees with the option Works at Multiple Locations selected on the Personal Information tab)
To enter pay rates for multi-location employees:
- Select the applicable Location.
- Click the sunburst icon to add a new rate.
- Enter the employee's regular hourly pay rate for this location in the Current rate field. (The Old Rate will change when the Current rate is updated and saved. There is no way to manually edit the Old Rate.)
- Enter the Default Hours for the pay rate.
- Enter a job Description for the pay rate.
- Select the Primary check box to designate that the Current pay rate is the rate to be used when calculating sick and vacation pay.
- Continue adding pay rates and job descriptions as necessary for multi-pay-rate/location employees.
Payroll Options Tab
Select the appropriate payroll options for the employee on the Payroll Options tab.
- Employee is…
- Tipped Directly - Tipped employees who receive tips directly from customers and then turn over their tips to the employer. These tips are included in the employee's gross pay so that all taxes and withholdings can be deducted from the gross pay. The payroll check includes tips in the net pay. This option can be set per location for multi-location employees (for employees with the option Works at Multiple Locations selected on the Personal Information tab).
- Tipped Indirectly - Tipped employees who do not ordinarily receive tips directly from customers, such as busboys, service bartenders, and cooks. The employee holds the tips and reports the tip amount to the employer. The employer includes the tip amount in the employee's gross pay so that taxes can be determined; however, the tips are not included in the employee's net pay since the employee kept the tips. This option can be set per location for multi-location employees (for employees with the option Works at Multiple Locations selected on the Personal Information tab).
- Seasonal/Agricultural/Part-Time Employee - For indicating if the employee is part-time or a seasonal or an agricultural employee.
- Use Employee's State for Box 15 on the W-2 - Use the employee's state in box 15 on their Form W-2 instead of the employer's state.
- Commissions Exempt from Overtime - Employee receives commissions that are
exempt from being paid overtime, regardless of the number of hours
worked. This option can be set per location for multi-location employees (for employees with the option Works at Multiple Locations selected on the Personal Information tab).
- Piece Work Exempt from Overtime - Employee receives compensation based on each product (piece) produced and is exempt from being paid overtime. This option can be set per location for multi-location employees (for employees with the option Works at Multiple Locations selected on the Personal Information tab).
- Use PFD with Piece Work - Activates the personal needs, fatigue, and unavoidable delays (PFD) allowance feature for this employee (Pay Per Piece PFD on the Payroll Wages tab); the Pay Class on the Payroll Wages tab must be Pay Per Piece to use this option.
- Sick Hours
- Sick Calculations - Activates tracking of sick hours available and used. Both this option and Sick Options must be set up under Employees > Options > Sick/Vac Options if planning to use global defaults for accrual and tracking purposes.
- Use Defaults - Uses the Sick Options data entered at Employees > Options > Sick/Vac Options for this employee. Selecting this option disables several Sick Hours options that can otherwise be modified on a per-employee basis.
- Rollover Hours - Automatically roll over unused Sick Hours Available at the end of the year to the Beginning Balance in next year's Drake Accounting program. Selecting this option activates the Rollover Cap field.
- Start Accrual Date - The date that the employee began accumulating sick hours.
- Accrual Method - The method that sick hour accumulation is based on. The method selected changes the field that follows:
- Hours Required - Creates the field Hours Required. Enter the number of hours the employee is required to work to earn one sick hour.
- Per Hours Worked - Creates the field Accrual Amount (Per Hour). Enter the amount that will be multiplied by the number of hours worked; this equals number of sick hours earned per pay period. If the employee does not work any hours, they do not earn any sick hours for that pay period.
- Per Check - Creates the field Accrual Amount (Per Check). Enter the number of sick hours that the employee earns on a normal payroll check. If no hours are worked, the employee does not earn any sick hours for that pay period.
- Per Year - Creates the field Accrual Amount (Per Year). Enter the number of sick hours that the employee earns per year. This amount is divided by the number of pay periods per year, determining how many sick hours are accumulated per check. Zero sick hours are granted for each pay period that the employee does not work.
- Yearly Lump Sum - Creates the field Beginning Lump Sum. Enter the number of sick hours that the employee receives at the start of each year. This amount automatically resets at the beginning of each year. A selection of Yearly Lump Sum disables the field Max Accrual (Per Year) since the starting number of sick hours is always the same.
- Max Accrual (Per Year) - The maximum number of sick hours the employee can earn per year. When this number is met, the employee cannot earn additional sick hours for the remainder of the year. This field is not available when an Accrual Method of Yearly Lump Sum is used.
- Available Hours Cap - The maximum number of sick hours the employee can have at any point. When this number is met, the employee cannot earn additional sick hours until their Sick Hours Available falls below the Available Hours Cap.
- Rollover Cap - The maximum number of Sick Hours Available that can be rolled over to next year. The option Rollover Hours must be selected to use this field.
- Beginning Balance - The number of sick hours available at the beginning of the year, including the rollover balance. If the option Rollover Hours is selected, this number is automatically updated into next year's DAS program (based on the Sick Hours Available and Rollover Cap).
- Sick Hours Available - The number of sick hours the employee can currently use. This number is calculated based on the following formula: (Beginning Balance + sick hours earned in current year) - Sick Hours Used. This balance is updated each time payroll is run.
- Sick Hours Used - The number of sick hours the employee has used in the current year. This balance is updated each time payroll is run.
- Vacation/PTO Hours
- Vacation Calculations - Activates tracking of vacation hours available and used. Both this option and Vacation Options must be set up under Employees > Options > Sick/Vac Options if planning to use global defaults for accrual and tracking purposes.
- Use Defaults - Uses the Vacation Options data entered at Employees > Options > Sick/Vac Options for this employee. Selecting this option disables several Vacation/PTO Hours options that can otherwise be modified on a per-employee basis.
- Rollover Hours - Automatically roll over unused Vac Hours Available at the end of the year to the Beginning Balance in next year's Drake Accounting program. Selecting this option activates the Rollover Cap field.
- Start Accrual Date - The date that the employee began accumulating vacation hours.
- Accrual Method - The method that vacation hour accumulation is based on. The method selected changes the field that follows:
- Hours Required - Creates the field Hours Required. Enter the number of hours the employee is required to work to earn one vacation hour.
- Per Hours Worked - Creates the field Accrual Amount (Per Hour).
Enter the amount that will be multiplied by the number of hours worked;
this equals number of vacation hours earned per pay period. If the employee
does not work any hours, they do not earn any vacation hours for that pay
period.
- Per Check - Creates the field Accrual Amount (Per Check).
Enter the number of vacation hours that the employee earns on a normal
payroll check. If no hours are worked, the employee does not earn any
vacation hours for that pay period.
- Per Year - Creates the field Accrual Amount (Per Year).
Enter the number of vacation hours that the employee earns per year. This
amount is divided by the number of pay periods per year, determining how
many vacation hours are accumulated per check. Zero vacation hours are granted
for each pay period that the employee does not work.
- Yearly Lump Sum - Creates the field Beginning Lump Sum.
Enter the number of vacation hours that the employee receives at the start
of each year. This amount automatically resets at the beginning of each
year. A selection of Yearly Lump Sum disables the field Max Accrual (Per Year) since the starting number of vacation hours is always the same.
- Max Accrual (Per Year) - The maximum number of vacation hours the employee can earn per year. When this number is met, the employee cannot earn additional vacation hours for the remainder of the year. This field is not available when an Accrual Method of Yearly Lump Sum is used.
- Available Hours Cap - The maximum number of vacation hours the employee can have at any point. When this number is met, the employee cannot earn additional vacation hours until their Vac Hours Available falls below the Available Hours Cap.
- Rollover Cap - The maximum number of Vac Hours Available that can be rolled over to next year. The option Rollover Hours must be selected to use this field.
- Beginning Balance - The number of Vac Hours Available at the beginning of the year, including the rollover balance. If the option Rollover Hours is selected, this number is automatically updated into next year's DAS program (based on the Vac Hours Available and Rollover Cap).
- Vac Hours Available - The number of vacation hours the employee can currently use. This number is calculated based on the following formula: (Beginning Balance + vacation hours earned in current year) - Vac Hours Used. This balance is updated each time payroll is run.
- Vac Hours Used - The number of vacation hours the employee has used in the current year. This balance is updated each time payroll is run.
GL Accounts Tab
Select a GL Account Profile (created at Employees > Options > GL Accounts tab) to determine the payment method for the employee.
If a client location has a GL Account assigned to it (Client > Locations > GL Accounts tab), the location is listed in the GL Account Profile drop list. The option Location Profile corresponds with the client's default GL Account Profile (the first location listed at Client > Locations > GL Accounts tab, determined by the client's default address, which is entered at Client > Add or Edit > Contact Information tab). Default Account information is listed beside each Account Type in blue text. Override information on a per-employee basis, as needed. Use the sunburst icon to create additional Payment Methods, if needed.
NOTE: Any Account information entered on the employee's GL Accounts tab overrides the default profile settings and will be used for payroll purposes.
Federal Tax Tab
Enter information about an employee's federal withholding on the Federal Tax tab.
- Employee is...
- Nonresident Alien - Employee is taxed at the higher, nonresident alien rate.
- Exempt from FIT (Federal Income Tax) - Employee’s wages and withholdings are exempt from federal income tax (no taxes are taken out of checks for federal income tax). Wages will not appear on box 1 of Form W-2 or box 2 of Form 941, and withholding will not appear on box 2 of Form W-2 or box 3 of Form 941.
- Exempt from FITW (Federal Income Tax Withheld) - Employee is exempt from federal income tax withholding; however, the employee is not exempt from the taxes themselves. Wages will appear on box 1 of Form W-2 or box 2 of Form 941, but withholding will not appear on box 2 of Form W-2 or box 3 of Form 941.
- Exempt from FUTA (Federal Unemployment Tax Act) - Employee is exempt from paying federal unemployment tax.
- Exempt from SS WH - Employee is exempt from paying Social Security withholding.
- Exempt from Medicare WH - Employee is exempt from paying Medicare withholding.
- Visa - If the employee is using a work visa to qualify for work in the U.S., select the employee's visa type.
- Federal Withholding Options
- Wage Calculation Method - Use the "Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later" (IRS Pub. 15-T, Table 6) as the default method for calculating federal withholding and tax on annualized payroll.
- Fixed Percent Method - Use a fixed percentage to determine the federal tax, regardless of income. When Fixed Percentage Method is selected, the Federal Withholding Information section changes to prompt for the actual withholding percent used. Enter the fixed state tax percentage in the corresponding WH. Percent field. Enter the percent as a decimal; for example, enter .15 for 15%.
- Fixed Amount Method - Set each check's federal withholding amount to a set amount. When Fixed Amount Method is selected, the Federal Withholding Information section changes to prompt for the set amount. Enter the fixed amount in the corresponding WH Amount field.
- Rounded - Round state withholding amounts of 50 - 99
cents up to the next dollar. Amounts less than 50 cents will be rounded
down to the nearest whole dollar.
- Federal Withholding Information
- Pre-2020 W-4 - Removes the fields Dependents, Other Income, Deductions, and Step 2 Checkbox, and creates the field Exemptions, mirroring options previously available in prior versions of DAS for pre-2020 Forms W-4.
- The federal government does not require that employees hired pre-2020 use the latest version of Form W-4. The employee can choose to use the latest form, but the employer is not required to make them. However, any employee hired after January 1, 2020, is required to use the newest version of Form W-4.
- Filing Status - Employee's filing status as displayed on Form W-4.
- Extra Withholdings - Employee's extra withholdings as displayed on Form W-4.
- Dependents, Other Income, and Deductions - (available when Pre-2020 W-4 is not selected) Enter the corresponding information as it appears on the employee's Form W-4.
- Exemptions - (available when Pre-2020 W-4 is selected) Number of employee exemptions as displayed on the employee's Form W-4.
- Step 2 Checkbox - Employee has multiple jobs. Selecting this option puts the employee in a nonstandard tax bracket (described in IRS Pub. 15-T).
State Tax Tab
Enter information about an employee's state withholding on the State Tax tab.
- While working in ___, employee will use State Tax Table of ___ and SUTA of ___
- While working in information is pulled from the client's primary address (Client > Add or Edit > Contact Information tab). If the client has multiple locations and the employee works at more than one location (Works at multiple locations is selected at Employees > Employee Setup > Personal Information tab), select the applicable place of work in the Locations section, located in the upper-right corner of the Employee Setup screen. Locations must be established at Client > Locations in order for them to be added at Employees > Employee Setup.
- The employee's State Tax Table is used for tax withholding purposes.
- The State Unemployment Tax Act (SUTA) state flows to the State Code field when processing Live and ATF payroll.
- Employee is...
- Exempt from SUTA - Employee is exempt from paying state unemployment tax.
- Exempt from State WH - Employee is exempt from paying state withholding.
- State Withholding Options
- Wage Calculation Method - Use annualized payroll to calculate the state withholding as described in the publications for each state.
- Fixed Percent Method - Use a fixed percentage to determine the state tax, regardless of income. When Fixed Percentage Method is selected, the Filing Status/Exemptions section changes to prompt for the actual withholding percent used. Enter the fixed state tax percentage in the corresponding WH Percent field. Enter the percent as a decimal; for example, enter .15 for 15%.
- Fixed Amount Method - Set each check's state withholding amount to a set amount. When Fixed Amount Method is selected, the Filing Status/Exemptions section changes to prompt for the set amount. Enter the fixed amount in the corresponding WH Amount field.
- Rounded - Round state withholding amounts of 50 - 99 cents up to the next dollar. Amounts less than 50 cents will be rounded down to the nearest whole dollar.
- Filing Status/Exemptions - The fields Filing Status, Additional WH, and Exemptions are available when Wage Calculation Method is selected under State Withholding Options. Enter information from the employee's state W-4 here.
- General Selections - This section appears if additional state information is required based on the employee's State Tax Table selection.
- Blind - (IL, MA, or MS) Employee, Spouse, or Both are blind.
- Over 65 - (IL or MS) Employee, Spouse, or Both are over the age of 65.
- Wage Chart - (NJ) Wage chart for state withholding purposes.
- % Gross Taxable Wages - (AZ) If the employee is taxed based on a percentage of federal tax, choose the applicable tax rate.
- Number of Dependents - (AL or MS) Number of dependents the employee claims for state withholding purposes.
- Est. Deductions - (CA, LA, MS, NJ, or PR) If the employee qualifies for Estimated Deductions Reduction withholding, enter the amount of the deductions here.
- Worksite ID - (CO or IN) Employee's worksite ID.
- Dependents - (IN) Number of dependents the employee claims for state withholding purposes.
- Reporting Unit - (IA) Reporting unit number where the employee works.
Local Tax Tab
Use the Local Tax tab to indicate the local taxes that should be withheld from the employee's check. The State Tax Table of selection on the employee's State Tax tab dictates the Available Localities options displayed on the Local Tax tab.
NOTE: Localities are not available for all states.
Localities are separated into Work Localities and Residential Localities. For multi-location employees, Residential Localities are applied to all locations, but Work Localities apply to the selected location only. (If the client has multiple locations and the employee works at more than one location (Works at multiple locations is selected at Employees > Employee Setup > Personal Information tab), select the applicable place of work in the Locations section, located in the upper-right corner of the Employee Setup screen. Locations must be established at Client > Locations in order for them to be added at Employees > Employee Setup.)
- Available Localities - Localities available for the selected state. Use the column headers (State, Type, Name, Code, and Rate) to sort the list by the desired criteria. Select the applicable locality tax from the list and use the arrows beside Work Localities or Residential Localities to send it to the appropriate table.
- Work Localities - Localities applicable to the employee's currently selected location. Taxes in this table are withheld from the employee's pay.
- Additional WH - The additional amount that will be withheld per employee check. Drake Accounting automatically calculates the base withholding per check and adds the Additional WH to that amount.
- Apply to Resident Tax Credit - Uses the selected locality when calculating the Residential Tax Credit.
- Residential Localities - Localities applicable to all locations for the employee; these are based on where the employee lives.
- Additional WH - The additional amount
that will be withheld per employee check. Drake Accounting
automatically calculates the base withholding per check and adds the Additional WH to that amount.
- Resident Tax Credit - Applies the calculated Residential Tax Credit to the selected locality.
Deductions Tab and Benefits Tab
Use the Deductions and Benefits tabs to assign applicable payroll deductions and benefits for the selected employee. Deductions and benefits assigned to the employee appear on their payroll screen
and check stub. There is no limit to the number of deductions and benefits that can
be assigned to each employee. See KB 15125 for an overview of creating employer deductions and benefits and applying them to employees.
Direct Deposit Tab
Enter direct deposit information for the employee on the Direct Deposit tab. Direct deposit payroll checks can be divided between two accounts per employee. Checks can be split between any combination of checking and savings accounts (example: two checking, two savings, or one of each). These accounts can be at two different banks.
NOTE: Before completing the employee's Direct Deposit tab, you must first set up your firm to use direct deposit through Drake Accounting's direct deposit agent, Kotapay. See KB 15091 for details.
After completing initial direct deposit setup, return to the employee's Direct Deposit tab, and complete the following information, as applicable.
- Direct Deposit Payroll Checks - Indicate that the employee's payroll checks are to be deposited directly into the employee's bank account. Selecting this option activates the Primary Account section.
- Account Type - Choose between Checking or Savings. An entry in this field activates the Secondary Account section.
- Routing Number of employee's bank account (must be re-entered)
- Account Number of employee's bank account (must be re-entered)
- Use Primary Routing Number - Use the Routing Number of the Primary Account for the Secondary Account. The Routing Number of the Secondary Account cannot be changed when this option is selected. If any changes are made to the Primary Account Routing Number, the changes flow to the Secondary Account.
- Apply to Account - Enter the amount of Dollars/Cents to be deposited into the employee's Secondary Account each paycheck or a Percent of the employee's total paycheck. Percentages must be entered as a decimal; for example, enter .15 for 15%.