I will be configuring the withholding tax. Basically there are 1099 vendors that are mostly on 07 tax code (non employee compensation) but there are few which have three tax calculation (04, 07, 16 tax codes) , so there is a tax withheld for 04 federal and 16 state tax . I want to know, do we need to put percentage of withholding for tax code 04 and 16 in the configuration of withholding tax codes. Because as far as I am told the percentages differ depending on what the 1099 vendors fill in the W-4 form. So I need to know if we cannot default the percentages, where would these percentages go in order to deduct that amount from payment.
There is a tab for withholding tax in FB60 but when I click on it, it is greyed out. SO how will the percentage of the withheld amount is going to get calculated.
Please explain
Thanks