Entering Advanced Earned Income Credit
Posted: January 14th, 2012, 5:01 amAdvanced Earned Income Credit is a “contra tax”.
1. Go to Payroll/Configure/Taxes.
2. Select US EIC.
3. Configure US EIC and then assign US EIC to employees, as applicable, specifying Filing status and number of Certificates.
The program will then calculate the appropriate income credit during Calculate Payroll.
Many users specify their standard FIT Withholding payable account as the G/L account for US EIC since EIC offsets some portion of FIT payable.
1. Go to Payroll/Configure/Taxes.
2. Select US EIC.
3. Configure US EIC and then assign US EIC to employees, as applicable, specifying Filing status and number of Certificates.
The program will then calculate the appropriate income credit during Calculate Payroll.
Many users specify their standard FIT Withholding payable account as the G/L account for US EIC since EIC offsets some portion of FIT payable.