Missing Earning Code Taxability Settings

How to clear error messages during payroll processing regarding missing earning code taxability settings.

What does this error mean?

You are receiving this error during payroll processing because you have a custom earning or deduction code missing the agency's taxability settings specified in the error message.

Most regular earning or deduction codes have tax settings built in the background, but custom earnings and deductions will need to have each tax agency manually added with their required settings.

This error message is caused by one of the following:

  • You recently added a new tax code, or
  • You are using a custom earning/deduction that is not often in use, and you will receive this error message on any tax code added since the last time you used it 

How to fix this error

  1. Click on the error message hyperlink to go directly into the earning or deduction code that is missing the settings.
  2. You will see a Tax Settings widget on the bottom right of this screen. Click on Add Tax Setting button.
  3. In the popup, choose whether this tax should be taxable or exempt for the EE (employee) and ER (employer). Click Select Taxes.
  4. Use the checkboxes to select all tax codes that agree with the taxability settings you chose in Step 3. Click Add Selected Taxes.
    1. If you need to have different taxability for different tax codes, you will need to complete steps 2-4 multiple times.
  5. Press the Back arrow to return to your payroll.
  6. After your updates are made, you must recalculate your pay statements to clear the payroll errors.