Payroll Taxes
If your organization handles transactions in the United States, you are required to comply with federal, state, and local tax regulations. Zoho Spend helps you manage and maintain these tax details efficiently from one place.
In the Payroll Taxes section, you can:
- Configure your organization’s tax information.
- Authorize your tax reporting agent.
- Update your tax setup whenever required.
Configure Tax Information
Configuring tax information in Zoho Spend helps your organization:
- Calculate applicable federal, state, and local taxes.
- Determine the tax rates and frequencies for each location.
- Generate tax reports for compliance and audit purposes.
You can configure the following:
Federal Tax Information
The Federal Tax Information section allows Zoho Spend to calculate federal tax liabilities, determine deposit schedules, and generate compliant reports.
To configure your federal tax details:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Payroll Taxes under Taxes & Compliance.
- Click Configure under Federal Tax Information.
- Enter the required details in the form, such as:
- Federal Employer Identification Number (FEIN)
- Federal Tax Deposit Frequency
- Federal Unemployment Tax Deposit Frequency
- Click Save.
Warning: Once you configure these details, the Federal Employer Identification Number (FEIN) cannot be modified after your first financial cycle is processed. Ensure accuracy before saving.
Once saved, Zoho Spend will use this information to calculate and report federal-level taxes automatically.
State Tax Information
The State Tax Information section helps Zoho Spend determine the applicable state taxes, deposit schedules, and generate relevant forms.
If your organization operates in multiple states, you’ll need to configure tax details for each state individually.
To configure your state tax details:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Payroll Taxes under Taxes & Compliance.
- Click Configure under State Tax Information.
- Enter the required information as per your state’s requirements.
- Click Save.
Once configured, Zoho Spend will calculate the corresponding state taxes automatically.
Authorize Tax Reporting Agent
After configuring your tax details, you or an authorized user must allow Zoho Spend to act as your tax reporting agent. This authorization allows Zoho Spend to file or report tax-related information on your behalf.
To authorize a tax reporting agent:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Payroll Taxes under Taxes & Compliance.
- Click Authorize.
- In the confirmation popup, verify your authorization and click Proceed.
- For each listed form, click Sign and Submit.
Once the forms are submitted, the authorization process will be complete.
Note: You must reauthorize Zoho Spend each time you add a new work location or update your tax jurisdictions.
Update Tax Information
You might need to update your organization’s tax information when there are changes to tax rates, deposit schedules, or state-level requirements.
The ability to edit tax details in Zoho Spend depends on your organization’s transaction status.
| Transaction Status | Access Level |
|---|---|
| Before any transactions are processed | You can edit all tax details freely. |
| After setting up but before finalizing reports | You can edit all tax details freely. |
| After processing transactions or approvals | You can edit specific fields, and changes will take effect from a selected effective date. |
Cases 1 and 2: Before processing your first payroll and After processing your first payroll, but before approving it.
To update tax details before finalization:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Payroll Taxes under Taxes & Compliance.
- Click Edit next to Federal Tax Information or State Tax Information.
- Make the necessary updates and click Save.
Your changes will be applied immediately.
Case 3: After processing and approving your first payroll.
To update tax details after processing or approvals:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Payroll Taxes under Taxes & Compliance.
- Click Change next to the field you want to modify.
- In the popup that appears, update the information and select an Effective From date.
- Click Save.
Your changes will take effect from the selected date.