Drake Accounting®: How do I set up withholding codes for employees?
Drake Accounting can be used to set up withholding codes and add them to an employee’s Form W-2. To set up withholding codes:
- From the side menu, go to Employees > Deductions and Benefits > Deductions tab.
- Select the applicable deduction or create one by clicking the sunburst icon (
) and entering the Deduction Name, Account, Amount, Ceiling, and State.
- Under Other Properties, select the WH. Code to use on Form W-2.
- Click Save.
When checking Employees > Setup Review, you may get the notification Deductions have a Withholding Code Assigned, indicating which code needs to be reviewed. The review will only look for deductions that have any of the following keywords in them Deduction Name: 401, SDI, DISABILITY, FLI, UI, MD, CHILD, and GARNISH.
See KB 15125 for more information on setting up employee deductions and benefits.