- Knowledge Base Categories:
- School Accounting System
- Payroll
FAQ: How can I verify that the amount of FIT (or SIT) being calculated is correct?
To manually calculate the amount of FIT (or SIT) for an employee, first calculate the annualized FIT (or SIT) taxable gross by multiplying the FIT (or SIT) gross per pay period by the number entered in the Tax Pay Periods Per Year field (from the Employment screen in the Employee File). For example, if an employee’s tax pay periods per year is 12 and the taxable gross for Federal Income Tax is $2,000 for a pay period, multiply the $2,000 by 12 to determine the annualized FIT taxable gross of $24,000. The annualized taxable gross must be determined because the School Accounting System uses the annual tax table amounts defined by the federal and state governments to calculate and withhold income taxes.
Then calculate the amount of FIT (or SIT) to withhold for the employee using the designated tax table (as stipulated for the employee on the Taxes screen in the Employee File) and number of exemptions, if applicable. The tax table information for a tax can be accessed by selecting the Maintenance menu in Payroll, and Taxes; then bring up the tax, click the Tax Table tab, enter the applicable year, and select the appropriate table.
To review the complete FIT calculation for specific examples, click here.