Forecasting Federal and State Income Taxes

You can calculate federal and state income taxes on the Forecasting Detail page after setting up the accounts and supplemental data information.

1. Select Setup > Chart of Accounts from the menu.
2. Verify that a federal and/or state tax account exists or set up the account.

   For federal taxes, verify that a non-interest income/expense account is available in the Chart of Accounts setup page that uses the Federal Taxes predefined formula and the Tax % Account of Federal Tax.

   For state taxes, verify that a non-interest income/expense account is available in the Chart of Accounts setup page that uses the State Taxes predefined formula and the Tax % Account of State Tax.

3. Select Forecasting > Supplemental Data from the menu.
   The Forecasting Supplemental Data page opens.
4. Select the Supplemental Data option to open the Supplemental Data setup page.
   1. Verify that a federal and/or state tax rate account exists or set up the account.
      Set the Data Type as Rate and the Ratio Code as either Federal Tax Rate or State Tax Rate.
   2. Select Forecasting Supplemental Data to return to the Forecasting Supplemental Data page.
5. Select the federal tax rate and/or state tax rate accounts from the account list.
6. Enter the appropriate values and save your changes.
7. Select Forecasting > Detail from the menu.
   The Forecasting Detail page opens.
8. Select Non-Interest Income/Expense as the Account Type.
9. Select the federal tax rate and/or state tax rate accounts from the account list.
10. Select either This Organization or All Organizations from the Balance option.
    Note: If the selected What If model has the Consolidated Organization Method set to Sum-No Calculation, then the balancing routine that includes the calculation of taxes can only be run at the branches.
11. Review the calculated federal and/or state income tax expenses.