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Income tax formula in Peachtree accounting

How to create Allowances and Income tax on formula Base in Peachtree follow the following steps.

Go to the file Menu, the click on Payroll formulas then click on user maintained.

for Income tax Creation

Formula ID : I_Tax  (write in this format)

Name            : I_ Tax 16    ( 16 Means 2016)

How do You classify this formula? : Tax

Tax Agency : Federal

Affect on Gross Pay : Subtracts from Gross

Filling status  : All

Formula              : Answer=15000-Gross* 2.5%    ( Note 15000 is the salary Amount which is not taxable,therefore we have put this amount in the                                                                                                   formula,you should put those Amount of salary which not taxable )

income tax formula in peachtree

click on Add this formula to Employee defaults ( see in the write bottom corner)

 

General     : I_Tax ( write by your self)

GL A/c         : 2330 ( Federal Payroll Tax Payable )

Calc               :Click on the Box to show a red color Tick Mark

Formula       : select I_Tax

Run               : click on Run option to create Red color Tick Mark

then make it save.

Now We will pass the Payroll entry Go to the Task menu and click on

Payroll entry    

Select the Bank Account from whom you want to pay the employee.

Employee ID : select the Employee.    (there may be a message, but you should click on the OK option of that message repeatedly)

Also give check Number.

Now you can check Income tax on right side menu of  Taxes, Benefits and liabilities.Also check  balance sheet from the Report Menu or there is also an option on the dash board. you will see on the liability side income tax payable.To check wages expense or salaries to the employees go to the report Menu or the option is also available on the dashboard. we will also provide Allowances on formula bases in.the formula is very simple for allowances.

 

 

 

 

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