Federal (IRS) and State Withholdings for Vendors

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Ambrose Eric Byrd
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Federal (IRS) and State Withholdings for Vendors This document walks a user through how to set up federal (IRS) and state withholdings for Vendors To begin from Encompass choose winhap from the

You also need to set up Minimum if applicable for both the State and Federal levels. Minimums are used if you want the system to start withholding after vendor has reached a certain dollar amount.

1 Federal (IRS) and State Withholdings for Vendors This document walks a user through how to set up federal (IRS) and state withholdings for Vendors To begin from Encompass choose winhap from the Tenant/Applicant Mgt tab, as shown here. First, you will need to set up the percentage to withhold for both State and Federal withholding. You need to have an amount entered even if it is 0. You also need to set up Minimum if applicable for both the State and Federal levels. Minimums are used if you want the system to start withholding after vendor has reached a certain dollar amount. Again you need to have an amount entered even if it is 0. This option is found by selecting HA in the Setup tab. Please note: You can get to the HA setup from winfam or wintar modules also. Page 1 of 12

Once you have completed this, click in the Save button.

2 The following screen will appear: Enter the Federal and State tax withholding minimums and percentages. Once you have completed this, click in the Save button. The following prompts will appear: Click the Yes button. Page 2 of 12

3 Click the OK button. This will take you back to the Housing Authority screen. If all changes are correct. Click the Exit button. This will take you back to the winhap Setup tab. Now we will exit winhap and go to winap Page 3 of 12

appear: Click on Insert Row In the blank row you will enter

4 Once you are in winap click on HMS Fin Defaults under the HAB Setup heading as shown below: The following screen will appear: Click on Insert Row In the blank row you will enter the following information by clicking on the drop down: Page 4 of 12

Enter the default account numbers(usually a liability account) Once you have repeated these steps for

5 . 1. Select AP as the Application. 2. Select Federal Tax Withholding Account as the function. 3. Type in Sysadm 4. Enter the default account numbers(usually a liability account) Once you have repeated these steps for State Tax Withholding Account. Click the Save button. Click Yes when the prompt appears. You will then be taken back to the HMS Financial Defaults screen. Click Exit to continue Page 5 of 12

6 Next select the Vendors tab and then Add/Change You will then be taken to the Vendor Table screen Page 6 of 12

7 Once here, click Open. This will bring up the Vendor Search screen. Click Search to find your vendor. Page 7 of 12

8 Select your vendor and then click OK This will take you back to the Vendor Table screen Page 8 of 12

9 Enter your tax withholding information. If you want the total paid to the vendor to be withheld at the percentage you set up in winhap then mark the Exceeds Fed Minimum and Exceeds St Minimum. Once finished click Save and then Close. Page 9 of 12

10 Select the Payments tab and then Selection This will take you to the Accounts Payable Check Writing Selection Program screen. Here is how the withholding works when Payment selections are saved (after either manually clicking on the invoices in the table window or by ranges in Selection Items screen): -as invoices are gathered together by vendor, it will check if he s marked to Withhold and if so, it will accumulate his YTD to see if he s over the minimum and calc the percent of this check and automatically inserts a credit memo (OR if he is marked as expected to Exceed the Minimum it will automatically insert a credit memo regardless of current YTD amount). -this Auto Tax W/H credit memo will now refresh on the Selection screen, it will show on Cash Requirements and it will show up under Invoice Entry(but you cannot change it because it is Selected for payment) -Void invoice screen will not show the Auto Tax W/H credit memos. If you void an invoice that is currently selected, it will not only clear that selection but ALL selections for the vendor and delete his open Auto Tax W/H credit memos. -if you go back into Selections and Save anything again, it will first delete Auto Tax W/H credit memos that are open and then insert new ones(to pick up any invoice changes that potentially affected the percentage amount). -if you want to get rid of a vendor s Auto Tax W/H credit memo, you need to go back to the vendor screen and Unmark his Withhold checkbox then go back into Payment Selections and Save (which deleted open Auto Tax W/H credit memos but won t add a new one again for him). Page 10 of 12

11 Check the box to the left of your recently added vendor and then click Save. Click OK Click OK You will then be taken back to the Accounts Payable Check Writing Selection Program screen. Page 11 of 12

12 Click Close to exit the screen. Page 12 of 12

6. Vendor Maintenance

6. Vendor Maintenance Table of Contents Vendor Maintenance... 2 Direct Pay Info... 7 History... 8 Accounts... 10 Del Move... 11 Click on 6. Vendor Maintenance from the Main Menu and the following window