Vertex^® Payroll Tax Q Series^®

Vertex Payroll Tax Q Series for client/server operating environments keeps pace - accurately calculating federal, state, Canadian, U.S. territories, Puerto Rico and local taxes on all regular and supplemental wages for multiple work locations per employee.

Vertex Payroll Tax Q Series provides end-to-end functionality, open-systems flexibility and reliable Vertex tax research applicable to any leading payroll or HRMS software.

Features

• Over 8,000 Local Payroll Tax Requirements: Past and current rates and calculation methods for all federal, state, Canadian, U.S. territories, and Puerto Rico withholding taxes (including unemployment and disability)
• Direct Interface with Payroll Processing Systems: The system accesses the required data, passing the appropriate taxes back into the payroll system making actual calculation virtually invisible to the user's organization.
• Reciprocal Agreements Recognized: Among states, cities and counties, and calculates state and local taxes accordingly. Even where formal reciprocal agreements don't exist, the system calculates and applies all appropriate credits to the resident state tax.
• GeoCoder Location System: Allowing you to automatically apply GeoCodes to each employee's payroll/personnel record during installation or updating.
• Four-level History for Tax Review and Auditing: Vertex Payroll Tax Q Series' advanced net-to-gross logic calculates tax amounts and appropriate gross pay for:
  • Specific net pay, whether moving expenses, bonuses or income of foreign nationals
  • Advanced vacation pay by prorating taxes according to the period of vacation being paid - including partial and multiple periods
  • Tips by determining taxability and adds them to gross wages before calculating taxes
  • IRS qualified benefit plans by storing the taxability and maximum contribution limits for 401(k), 403B, 457 and 125 Cafeteria Plans, subtracting contributions from gross compensation (where appropriate) before calculating taxes
• Calculation Methods Include:
  • Annualized – This is the preferred method for federal withholding tax calculation and the most common among states.
  • Cumulative – An alternate method of calculating federal and certain state withholding taxes.
  • Flat Percentage – Applies to most local taxes and Pennsylvania state withholding.
  • Concurrent Aggregation– Annualized method for regular and supplemental wages paid at the same time. Regular and supplemental wages added together before tax calculation.
  • Cumulative Aggregation – Cumulative method for regular and supplemental wages paid at the same time. Regular and supplemental wages added together before tax calculation.
  • Previous Aggregation – For supplemental wages paid separately. Supplemental wages combined with previous regular wages before tax calculation.
  • Self-Adjust – For closed-ended taxes calculated up to a maximum amount for the year, this method continually adjusts tax amount so YTD tax is correct at end of year.
  • Other – Vertex uses the exact published tax formulas required by taxing jurisdictions without alteration, including special methods for particular taxes and jurisdictions, incorporating minor variations as required by the jurisdiction.
• Comprehensive Payroll Tax Calculations for Federal, State and Local:
  • Federal level
    • Federal Unemployment Insurance Premium (FUTA)
    • Federal Insurance Contribution Act (FICA) including:
    • Social Security
    • Medicare
    • Advance Earned Income Credit
    • Railroad Retirement Taxes
  • State level
    • State Withholding Tax incorporating approved marital statuses
    • State Unemployment Insurance (SUI)
    • State Disability Insurance (SDI)
    • State miscellaneous taxes
  • Local level
    • County Withholding Tax
    • City, Borough, and Township Taxes
    • Occupational Privilege or Head Tax
    • School District Taxes
    • Surtaxes

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Learn more about Vertex Payroll Tax Solutions or contact us today.