You can withhold a fixed dollar amount or percentage of a federal or provincial/state income tax using custom check templates in unscheduled payroll entries. The flat dollar amount or percentage that you define overrides the default amount that Dayforce would otherwise withhold for these taxes.
Note: For US employees, the system Normal check template (which is used for normal scheduled pay) is set to allow flat tax by default, and you can assign the Normal check template to a flat tax override in the employee's tax definitions. For Canadian employees, the Normal check template doesn't allow flat tax and you can't assign it to a flat tax override in the employee's tax definitions.
To configure a custom check template to apply a flat tax override:
- Go to Payroll Setup > Check Templates and select an existing custom template.
- If you are applying a tax override for US taxes, in the United States Taxation section, select Allow Flat Tax.
- If you are applying a tax override for Canadian taxes, in the Canada Taxation section, select Allow Flat Tax.
- Click Save.
To complete the flat tax configuration, you must assign the check template to a flat tax override in the employee's tax definitions. See Add Flat Tax Overrides for Employees.