GoCo houses all your payment information, but what about tax? Read further for details!
Depending on your company's settings GoCo can capture both state and federal taxes. Although GoCo does not capture local tax, it does have some special functionality if you are using embedded payroll.
When hiring you collect federal tax withholdings by sending an employee a W-4, either in the hiring wizard or in the document workflow. Here is a sample from the hiring wizard:
To collect state taxes you must enable this setting in the last page of the hiring wizard (it is on by default):
Both of these can be set on a global level on the team page settings:
When it comes to local taxes, GoCo does not capture or host those. However, if you are using embedded payroll, you will get a notification to add these directly to Execupay if an employee on the pay run is affected. This will be an item that Needs Review so you won't miss it!
Once you add the local tax directly to Execupay, you can mark the task completed and move on with your payroll.
- Does GoCo show exactly the dollar amount these tax withholding equates to on my paycheck?
- No, GoCo only captures the withholding values and your payroll company will do the math when taking the exact amount out of your paycheck. If you have GoCo's embedded payroll you will see this on your paycheck within GoCo.
- I tried to add local tax to Execupay but nothing is listed in the drop down. What now?
- If you have a new employee in a state you haven't registered before you have to let Execupay know. The same applies for local taxes, they have to add the code before it will show on your side. Contact your Execupay representative for more details!
- When do changes to these withholdings take effect?
- If an employee updates GoCo before payroll is run (or the payroll dashboard has been synced), their changes will take effect that same pay period. If they update it after payroll has been run, it will push changes to the next pay period.
If you have any other questions please email us at firstname.lastname@example.org!