Flat Tax Section Columns

Dayforce Implementation Guide

Version
R2025.1.1
Flat Tax Section Columns

The topic describes the settings in the Flat Tax section of Payroll > Tax Definitions in People. These settings are used to configure a flat tax override in the employee's record. See Add Flat Tax Overrides for Employees.

Columns in the Flat Tax section
Column Description

Check Template

The check template used to enter the flat tax override in a payroll entry. The following check templates are available in the drop-down list:

  • Individual custom check templates that have the Allow Flat Tax checkbox selected for the employee’s country. For example, if you enable the Allow Flat Tax checkbox of a check template for US taxation and not Canadian taxation, the check template is displayed in the Check Template drop-down list for US employees but not for Canadian employees.
  • Normal Checks: (US only) Assigns the system Normal check template (which is used for normal scheduled pay runs) to the override.
  • All Configured Checks: Applies the flat tax override to any custom check template that has the Allow Flat Tax checkbox selected for the employee’s country. This saves you from creating a separate override for each check template in the case where the override amount is the same for all templates.

Note:  

  • When you select All Configured Checks, the override doesn't apply to the system Normal check template that is available for US employees. If you want to override taxes for the Normal check template, you need to create a separate override with Normal Checks selected. As described earlier, Normal Checks is only available for US employees.
  • If the employee has multiple flat tax overrides configured, and one of the overrides has the All Configured Checks option selected for the same tax, Dayforce ignores the override with the All Configured Checks option selected. For example, if an override using the Secondary Check template has a state tax override of $100, and another override using the All Configured Checks option has a state tax override of $150, Dayforce withholds $100.

Amount Type

The tax calculation method which Dayforce uses to apply the amount you've defined in the Federal Amount, State Amount, or Provincial Amount fields. For example, if you select the Percent option and enter 15 in the Federal Amount field, Dayforce deducts 15% from the earning, instead of 15 dollars.

  • Percent: Applied as a percentage of the taxable wage. This is the default option.
  • Flat: Applied as a fixed dollar amount regardless of the taxable wage. You can use the Flat option, for example, if the pay is always the same.

Effective From

Effective To

The time period in which the tax override for earnings is applied. By default, the current date is displayed in the Effective From field, but you can select a different date as needed. Setting a date in the Effective To field is optional.

Note: You can set the Effective From field to a date in the past to apply the flat tax override to uncommitted payroll data from that period. For example, if there is already payroll data created for the current pay period that started last week, you could set the Effective From field to a week in the past.

Federal Amount

Provincial Amount

State Amount

The override amount that is applied in Dayforce based on the calculation method selected in Amount Type. A single override can have a value defined in one or both fields. When one of the fields is left blank that tax continues to be calculated using the standard formula and all other factors.

Provincial Amount is only available in Canadian employee records. State Amount is only available in US employee records.