## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/us/payroll/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Taxes

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If your business operates in the United States, you are required to withhold federal, state, and local taxes from your employees’ wages. Your organization must also contribute to employer taxes such as Social Security, Medicare, and State Unemployment Insurance. These amounts must be reported and paid to the appropriate government agencies.

With Zoho Payroll, you can efficiently manage these taxes in the **Taxes** section under **Settings**. This section allows you to:

1.  Configure Tax Information
2.  Authorize Tax Reporting Agent
3.  Update Tax Information

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## Configure Tax Information

Configuring your tax information in Zoho Payroll helps:

*   Calculate federal, state, and local taxes
*   Determine the taxes to be withheld from employee wages
*   Generate federal, state, and local tax forms
*   Identify your deposit schedule

In the **Taxes** section, you can configure the following:

*   [Federal Tax Information](/us/payroll/help/employer/settings/taxes.html#federal-tax-information)
*   [State Tax Information](/us/payroll/help/employer/settings/taxes.html#state-tax-information)

### Federal Tax Information

The **Federal Tax Information** section helps Zoho Payroll calculate your federal tax liabilities, determine your deposit schedules, and generate IRS-compliant forms.

To configure federal taxes:

1.  Go to **Settings** and click **Taxes**.
2.  Click **Configure** under _Federal Tax Information_.

![Configure Federal Tax Information](/payroll/help/us/settings/taxes/configure-federal-tax-information.png)

3.  Provide the required details:

![Enter the Details to Configure Federal Tax Information](/payroll/help/us/settings/taxes/federal-tax-setup.png)

**Field**

**Description**

**Federal Employer Identification Number (FEIN)**

Enter your organization’s Federal Employer Identification Number.

**Federal Tax Deposit Frequency**

Select the federal tax deposit frequency assigned by the IRS.

*   Semi-weekly
*   Monthly (Due 15th)
*   Next Day

  
If you are unable to locate this information or have queries about your deposit schedule, contact your local IRS office for assistance.

**Federal Unemployment Tax Deposit Frequency**

Select the tax deposit frequency for your federal unemployment taxes assigned by the IRS.

*   Quarterly
*   Annual

  
If you are unable to locate this information or have queries about your deposit schedule, contact your local IRS office for assistance.

**Warning:** Once you configure these details, the Federal Employer Identification Number (FEIN) cannot be modified after processing your first pay run. Hence, ensure accuracy before proceeding.

4.  Click **Save**.

Your federal tax setup is now complete. Zoho Payroll will use this information to calculate and report your federal payroll taxes.

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### State Tax Information

The **State Tax Information** section helps Zoho Payroll determine your state tax liabilities, deposit schedules, and generate state-specific forms.

When you add a work location (via [Settings > Work Locations](/us/payroll/help/employer/settings/work-locations.html)) for a new state, you’ll need to configure that state’s tax information here.

To conifgure state taxes:

1.  Go to **Settings** and click **Taxes**.
2.  Click **Configure** under _State Tax Information_.

![Configure State Tax Information](/payroll/help/us/settings/taxes/configure-state-tax-information.png)

3.  Enter the required details, which may vary depending on your state’s requirements.
4.  Click **Save**.

Zoho Payroll will now calculate applicable state taxes and generate the corresponding forms for this state. The state tax setup will be complete once you configure tax information for all available states.

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## Authorize Tax Reporting Agent

After configuring tax information, you or someone with authority in your organization must authorize Zoho Payroll as your tax reporting agent. This allows Zoho Payroll to file taxes and submit forms on your behalf.

To authorize your tax reporting agent:

1.  Go to **Settings** and click **Taxes**.
2.  Click **Authorize**.
3.  In the popup that appears, confirm that you have the authority to authorize and click **Proceed**.
4.  For each form listed, click **Sign and Submit**.

Once all forms are submitted, your authorization will be complete.

**Note:** This authorization must be completed every time you add a work location for a new state.

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## Update Tax Information

Tax rates, such as State Unemployment Insurance (SUI) and State Disability Insurance (SDI), may change annually, or you might need to adjust your deposit schedule. In such cases, you can update your tax details in Zoho Payroll.

There are three scenarios that affect how you can edit your tax information in Zoho Payroll:

**Pay Run Status**

**Level of Control**

**Before processing your first payroll**

You have full control to edit all tax information.

**After processing your first payroll, but before approving it**

You have full control to edit all tax information.

**After processing and approving your first payroll**

You can edit specific fields, with changes taking effect from the selected Effective Date.

Here’s how you can update the tax information for the pay runs in these statuses:

**Cases 1 and 2:**

1.  Go to **Settings** and click **Taxes**.
2.  Click **Edit** next to _Federal Tax Information_ or _State Tax Information_.
3.  Update the necessary details.
4.  Click **Save**.

Your changes will take effect immediately.

**Case 3:** To update tax information after approving at least one pay run:

1.  Go to **Settings** and click **Taxes**.
2.  Click **Change** next to the field which you want to update.
3.  In the popup that appears, modify the required information and select an effective date in the **Effective From** field.
4.  Click **Save**.

Your changes will take effect from the specified date.