- If your database is not hosted by Blackbaud, download and install the latest patch. The end-of-year patch contains updated configuration files to allow State taxes to be calculated in the new year.
- If your database is hosted by Blackbaud, State taxes will be calculated once the end-of-year patch has been installed. State taxes can be adjusted in future payroll runs: How to increase/decrease Federal or State income tax withheld on the next paycheck in Payroll 7
If you are already on the latest patch:
- Ensure the amount of the pay is enough to be taxed. Financial Edge looks at gross pay on an annualized basis to determine tax rates so if the annualized gross pay does not meet the minimum taxable amount, then taxes will not be calculated. To determine the annualized pay amount, multiply the pay for the period (after pre-tax deduction) by the number of periods on the employee's schedule. If this amount is below the minimum taxable amount per the tax table, then taxes will not be calculated.
- If the employee has a schedule with only one period, the gross pay would only be multiplied by one to get the annualized amount. In cases where the last pay period of the year was missed, the new schedule to include the last pay period needs to include every period of the year in order for taxes to calculate correctly.