1. In the Employer window, click Add Employer.
2. Enter the Organization Name.
3. Enter any Remarks about the employer.
4. In the Address section, enter the employer's address information. This section is similar to the Vendors & Payees, Income Sources, and Employee windows.

1. In the left navigation pane, click Tax ID Numbers.
   
2. Enter your Federal ID Number.
3. Enter your primary State ID Number and state Name (for W-2s).
4. If you have employees who work in a different state, enter that information in the Additional States section. For each state in which an employee works, click Insert and enter the state's Tax ID Number, Name (for W2s), Liability Account, and Account Name. The liability accounts must already be set up in your chart of accounts.

   Do not insert an additional line for the primary state indicated above this section.

5. Enter the SUTA ID Number, Rate, and Wage Limit. SUTA (State Unemployment Tax) is a tax paid by the employer, although non-profit agencies are usually exempt. For example, the employer may be required to pay 0.84% on each employee's wages up to $7,000. If you are not liable for SUTA taxes, enter 0 for the rate and limit.
6. Enter the SDIF/UC ID Number, Rate, and Wage Limit. SDIF/UC (State Disability Insurance Fund/Unemployment Compensation) is a tax paid by the employee for disability and unemployment. This is usually a percentage of the employee's wages up to a specified annual wage limit.
7. Enter your Local ID Number and Name (for W2s), if applicable.
8. If you have employees that work in one locality and live in another and either area requires that taxes be withheld, enter that information in the Additional Localities section. For each locality in which an employee works, click Insert and enter the locality's Tax ID Number, Name (for W2s), Liability Account, and Account Name. The liability accounts must already be set up in your chart of accounts.

   Do not insert an additional line for the primary locality indicated above this section.

In the employee's Wages/Master Paycheck window, the program uses the account number entered for state or local taxes to determine which state or locality is used. If the program does not find a matching account number in the Additional States or Additional Localities lists, it uses the primary state or locality.

1. In the left navigation pane, click Tax Options.
2. In the W-3 Kind of Employer section, select the option that applies to your organization.

   In order to electronically file a copy of your W-2s using the W-2 E-File process, you must select one of these options. For more details on the E-File process, see Payroll Tax E-File.

1. In the left navigation pane, click Overtime Setup.
   
2. Under Rates, enter the hourly multiplier rate for the following types of overtime:
   • Special Time — Holiday or other special pay rates.
   • Overtime 1 — Hours worked over the normal amount.
   • Overtime 2 — Hours worked over the normal amount and Overtime 1.

     For example, entering 1.5 for Overtime 1 is the same as saying "time-and-a-half".

3. Under Hours to Qualify, enter the number of hours required to qualify for each type of overtime. For example, anything over 40 hours each week receives Overtime 1, and anything over 60 hours each week receives Overtime 2. If you want to manually enter overtime hours when you print paychecks, enter 0 in the Overtime 1 and Overtime 2 columns.

There are two ways to set up automatic journal entries. You can create a default wage account for any wage accounts that do not have specific criteria. All wage accounts not specifically added to this list use the default setup.

For more information about setting up automatic journal entries, see About Automatic Journal Entries.