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I have searched and searched but to no avail... has anybody created a payroll module for a U.S. based company? It seems that most of what I've seen is that companies are using payroll companies to process their payroll, but I haven't found anybody using OpenERP 7 for hourly employees with the U.S. tax system (it's not a flat tax rate).

It seems like what I may have to do, is create tax table in PostgresQL for federal, state, and local taxes, then reference those tables in the deduction calculation. I read one article on using the vendors/ or suppliers module and implementing a tax structure from that, but then again, those are still flat rates. I have to believe someone else has done this for the U.S. payroll system, and probably done it better than I could as I am fairly new to OpenERP.

Smita Ahinave
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JimB
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2 Answers2

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I am in the process of doing something similar for LedgerSMB. The thing is that doing this on an open source model is extremely painful business-model-wise. I am working on solutions to that part but that's outside the scope of your question.

In general many US taxes are set up in marginal rates with certain minimums and maximums. For example income tax withholding is a set of marginal rates within tax brackets. Same with FICA and FUMA, but FICA taxes are capped at a certain level, so a simple tax table with rates, minimums, maximums, etc. and then a way of handling deductions to determine the correct line may be sufficient.

But users of most open source ERP's use third party services for payroll.

Chris Travers
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I have worked in an ERP. How we did is just calculate the FIT in yearly for all the employee and subtract the withholding amount with multiples.

FIT => Taxable Wages Yearly - (No.of withholding(Exemption))

Do the process as per the revision based on single or married only for annually. No need to update all the tables.

Then, Divided it based on the frequency from the employee table information

EX: 

for monthly : FIT/12
for daily : FIT/365

For SIT you have to use based on the document in the state usine case function.

Gopichandar
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