Automatic Payroll Tax Update

The Automatic payroll tax update wizard is used to update the most common tax and deduction rates within the payroll system with the new year’s rates. Many taxes and deductions such as local income tax and unemployment tax will not be updated. An accountant or tax consultant SHOULD REVIEW ALL RATES. EBMS does NOT CERTIFY THESE RATES and is not liable for any rates used within this software.

The Automatic Payroll Tax Update wizard is activated after a payroll year is closed but can also be started by going to Payroll > Utilities > Tax/Deduction Rate Update. If payroll has already been closed DO NOT RERUN THE CLOSE PAYROLL YEAR WIZARD TO UPDATE TAXES, but rather access the wizard from the Utilities menu.

The following dialog will appear if the Automatic Payroll Tax Update wizard is activated:

The first page of the Update wizard will contain two options if any payroll tax update files have been found. The wizard will advise the user if the updated tax rate file cannot be found. Contact your Eagle Solutions’ consultant for tax update information. Do not process any payroll within the New Year until all tax rate changes have been entered.

  1. Click on the first option – Automatically update my payroll taxes… to continue with rate updates or click on the second option – Do not automatically update…  do not change payroll rates and manually change all rates or change them at a later date.

     Click the Cancel button if you do not wish to continue with the tax updates.

     Click the Next button to continue.

  1. If the Automatically update my payroll taxes… option has been selected the following dialog will appear:

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Click on the Next button and the following wizard page will appear:

  1. The wizard will print a list of all the payroll rates AFTER the new rates have been updated. Click the Print the payroll tax rates OFF if you do not want this report to print. An accountant or payroll tax consultant should review and verify all rates before any payroll is processed within the New Year.

  2. Click on the Finish button to update taxes and print rate report.

Payroll rates can be changed after timecards have been entered but new rates will not take affect until the timecards are recalculated.