Drake Accounting - Withholding Code Setup

Overview

Drake Accounting can be used to set up withholding codes and add them to an employee’s Form W-2. To set up withholding codes:

1. From the side menu, go to Employees > Deductions and Benefits > Deductions tab.

2. Select the applicable deduction or create one by clicking the sunburst icon () and entering the:

   • Deduction Name

   • Account, Amount

   • Ceiling

   • State

3. Under Other Properties, select the WH. Code to use on Form W-2.

4. Click Save.

When checking Employees > Setup Review, you may get the notification Deductions have a Withholding Code Assigned, indicating which code needs to be reviewed. The review will only look for deductions that have any of the following keywords in them Deduction Name: 401, SDI, DISABILITY, FLI, UI, MD, CHILD, and GARNISH.

See Drake Accounting - Entering Payroll Deductions for more information on setting up employee deductions and benefits.