After completing the Setup Wizard, adding your employees, and setting up the company's policies, the final part is to set up your business's payroll and taxes.
I. Earnings
The first step is to set up earning codes. Earning codes categorize employee compensation types like Holiday, Overtime, Regular, Sick, and Vacation pay. These default codes are provided when your company is created, with procedures to add more if needed.
The pre-defined earning codes are designed to meet most companies’ needs. If you need something more specific, then select Add Custom.
Add a pre-defined earnings code template
Select the SETUP tab > Payroll > Earnings.
Click Add.
A slide-out with a list of pre-defined earnings appears.
Click Add next to the policy you want.
Review the information in the pop-up window that appears.
Click Continue.
Review the information and click OK.
Add a custom earnings code:
Click Add Custom.
Complete the required fields* in the Details section.
Click Save.
II. Deductions
Deduction codes categorize reasons for adjusting funds in an employee's paycheck beyond base pay and taxes, such as loan reimbursements, health insurance, 401(k) contributions, and expense allowances.
Add a pre-defined deduction code template
Select the SETUP tab > Payroll > Deductions.
Click Add.
A slide-out with a list of pre-defined deductions appears.
Click Add next to the policy you want.
Review the information in the pop-up window that appears.
Click Continue.
Review the information and click OK.
Add a custom deduction code
Click Add Custom.
Complete the required fields* in the Details section.
Click Save.
III. Tax Work Locations
The next task is to set up your tax work locations (TWL). A tax work location is the physical address where employees perform their job duties. If you have multiple business locations or remote employees working from different states, or work from home employees, in which you have registered or will register for a state tax ID, you can create a tax work location for each.
Add a tax work location
Go to the SETUP tab > Payroll > Tax Work Locations.
Click Add.
Complete the fields in the Details and Address Information sections.
The Code is an abbreviated name for the location.
The Description is a short, descriptive name. Together, these fields make up the full name as displayed in other areas of Fingercheck.
The Effective Date is the date you want people to start working from the location.
If you want to receive a warning during payroll processing on step 5, Preview Payroll, select the Enable Minimum Wage on Detail checkbox.
Scroll down to the State Tax IDs section.
If your company has a State Tax ID for the state:
Click Yes.
Enter the ID in the first field.
Click Save.
In the confirmation pop-up that appears, enter YES and click Continue.
If your company does not have a State Tax ID for the state:
Click No.
Click Save to continue adding the work location.
In the confirmation pop-up that appears, enter YES, and click Continue.
Register for a state tax ID.
The state is automatically added to the list of tax jurisdictions under the SETUP> Payroll > Tax Jurisdictions
Repeat this for each work location and home-based employee.
See State Tax Jurisdictions and Proper Formats for the correct formats.
You can do this through CorpNet. A link is available on the screen. See also How to Register for a State Tax ID.
IV. Add tax work locations to employees
After setting up your tax work locations (TWL) in SETUP, assign them to each employee's profile for accurate tax calculation. You can easily assign a TWL to multiple employees at once using Mass Change. Ensure you have at least one TWL set up before performing a mass addition.
When onboarding an employee, select the Employee Works From Home option on the Basic Information page (part 1).
Add TWL to more than one employee
Go to the Employees tab
Select the employees you want to add or change the TWL
This method only works for more than one employee.
Select Mass Change from the hamburger menu (quick actions)
Select TaxLocation from the dropdown
Then a pop-up will appear to advise to ‘Auto-load taxes’ after changing the TWL
Click OK
Choose the new TWL to add to the employees’ profiles
A confirmation pop-up will appear, and you can confirm by clicking Continue.
Add TWL to an individual employee
Go to the Employees tab
Open the employee’s details (Go to the EMPLOYEES tab, and click on the employee’s name.)
Select Payroll > Taxes.
Click the Edit icon (pencil) in the upper right.
In the pop-up window that appears, select Use Home Location.
In the next pop-up that appears, complete the fields
Click Continue.
Click Save to save the employee’s profile.
You will receive an email confirming that the change was made. The email will require you to:
Ensure your registration status is completed for local and state taxes
Submit documents for local and state to Fingercheck
V. Year-to-Date (YTD)
If your business processed any payrolls in the current year, you must enter payroll history in our Year-to-Date wizard before processing payroll with Fingercheck. This will ensure accurate year-end tax reporting.
In this task, you’ll add your year-to-date payroll tax information. Learn how to submit YTD.
You will need:
Employer’s quarterly federal and state tax returns
State Withholding and/or Unemployment account numbers.
Local tax withholding account numbers (if applicable)
Federal, state, or local tax deposit frequencies: how often you are required by the IRS, state, or local tax agency to pay your taxes
State tax rates: Unemployment, surcharges, state disability, paid family leave, etc.
PDF report type, quarterly payroll registers(per check), or YTD report
Where can you find this information?
Previous payroll provider. Learn how to find an earnings report from a previous payroll provider.
Prior tax reports or filings.
If you’re new and need to register for your account numbers, our partner, CorpNet will help you complete your employer tax registration. Fees apply.
Contact the IRS, state, or local tax agency.
Congrats! You’ve completed all of the Setup Tasks to start your first payroll!
