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BWalters

Global Change Question

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We are getting ready to process our EOY bonuses for our staff and wanted to know if there was an easier, more efficient way of processing this in Business Works. First let me tell you that we usually run our payroll on a bi-weekly basis. We have been told, in the past, that BW does not calculate taxes any differently if an employee only works one of the 2 weeks in the pay period (it will calculate the bi-weekly tax rate), therefore taxes adjustments need to be made. Since all of our employees will be getting a Bonus Other Pay, can we globally change everyone to a weekly pay period so that taxes are calculated at a weekly rate and then globally change everyone back? I would like to avoid having to do any manual tax adjustments if necessary. We are already having to manually adjust deductions for almost every employee for their bonuses. Less is more in my opinion. 

Any response is greatly appreciated. 

Thanks.

Brigette Walters

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    Bridgette-

    This question may be too much to address in this forum, but I will try. We generally would not recommend changing your parameters for a bonus check.  It is not the normal processing, so it is something we have not tested.  Generally, if you are looking to modify the tax calculations you would go through Manual Calculations after performing the Automatic Calculations. Our Knowledge Base has article regarding how payroll taxes are calculated.  For table driven taxes like SWT and FWT we use the annual tables (there is no “biweekly tax rate”).  But in the calculation formula, it will take into consideration the "# of pay periods in the year" so changing your settings will change your results.  You will want to make sure you are getting the results you want based on any modifications you choose to make.  For more information on the formula and how these are calculated see article "How Federal withholding tax (FWT) and state withholding tax (SWT) are calculated (19489)" .  Another article I would recommend review Knowledge Base article "How to use automatic and manual Payroll calculations (18686) "  In this article it also discusses How percentage-based taxes are calculated and how the system may self-adjust the amounts.   If you do choose to make any change in your system, I would recommend you backup your company first, in case you need to un-do your changes.  Or copy your company to a test company and test your changes in there first, to make sure you are getting the results you are intending.  If you do have any addition questions on this, then I would recommend you call and work with a support analyst by calling 800-447-5700 and open a case.   Thanks, Coleen

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