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I just ran across a situation where employees were marked as statutory employees but they were setup to have federal withholding taxes. Two questions arise here. One why would you set an employee as statutory but setup federal withholding taxes and why does GP allow you to do that since the entire purpose of setting an employee as statutory is not not withhold federal taxes?
Hi Richard, the box under Cards | Payroll | Tax, does not control if federal tax comes out or not, that is based on the pay code level. Yes I agree with what you are stating, but you still need to set up the pay code to not be taxed for federal. What this box is used for is your W2 window, so then the box flows over to the W2. You need to correctly tax your pay codes if the employee should not be taxed federal. Let me know if you have other questions, thanks
Thanks Terry for your response. I inherited this mess late last year. It seams as soon as I correct one thing two other things pop up. I will try to find out why all the original employees were imported with the statutory flag checked. They are all regular employees. These folks went live last April and it looks like this fell through the cracks.
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