Purpose
This step captures how your company deposits and files federal payroll taxes. UZIO uses it to pay and file your federal taxes on time. An error here directly causes late or incorrect tax deposits, IRS notices, and penalties.
Warning: UZIO is a payroll technology vendor and cannot give tax advice. Confirm every setting in this step with your accountant or tax specialist.
Who can do this: Any user whose role includes the Payroll permission. This is usually the Employer Admin, but other admin roles can be granted the same access.
Prerequisites
- Your Federal Employer Identification Number (FEIN), pre-filled from your company record
- Your IRS filing form (941 quarterly or 944 annual) and federal deposit schedule, confirmed with your accountant
The screen
The Federal Taxation page (under Payroll > Payroll Setup) has two tabs: Tax Setup and Tax Exemption Setup. Fields are read-only until you click Edit.
Tax Setup tab: what you enter and what it affects
| Field | Notes | What it affects |
|---|---|---|
| Employer Identification Number (EIN) | Your nine-digit IRS number, pre-filled from your company record. Editable only during initial setup. After payroll setup is complete it is read-only and shows "Please reach out to your UZIO payroll contact to update your FEIN." | Every federal deposit, return, and W-2 carries this number. |
| Company Legal Entity Name | The registered name used on government forms. | Printed on returns and W-2s. |
| Company Type | How your business is set up. The on-screen list: Association, Co-ownership, C-Corporation, General Partnership, Joint Venture, Limited Partnership, LLC, LLP, Non-Profit, Sole Proprietor, S-Corporation, Trusteeship. | Controls whether the 2% S-Corp shareholder question appears (S-Corporation or LLC only). |
| Filing Form | 941 (quarterly) or 944 (annual), with an effective date. Marked Optional on screen. | Which federal return UZIO files for you. |
| Federal Tax Deposit Schedule | Monthly or Semiweekly, with an effective date. Marked Optional on screen. | When UZIO deposits federal income tax, Social Security, and Medicare. See the warning below. |
Owner Details
Two Yes/No questions in the Owner Details section:
| Question | Why it matters |
|---|---|
| Do you have employees who are owners/ corporate officers/ executive members? | On-screen note: "Corporate employee indicator is required to accurately calculate Workers' Compensation tax for salaried employees in the state of Wyoming. If all employees are set as hourly or there are no work locations in Wyoming, the system will ignore this setup for the tax calculation. However, you can still set this up for book-keeping purposes." |
| Do you have employees who are eligible for increased deferral limit as per SECURE 2.0 Act? | Selecting Yes gives age-eligible employees the increased deferral limit in 401(k), 403(b), 457(b), and SIMPLE IRA plans. |
When your Company Type is S-Corporation or LLC, a third question appears: "Do you have employees who are 2% shareholders of an S-corporation?" Answer Yes and select the affected employees so that their company-paid health premiums and HSA contributions are taxed and reported correctly. If you do not see this question, check your Company Type selection. See Health Premiums and HSA Contributions for 2% S-Corp Shareholders.
Steps
- Go to Payroll > Payroll Setup > Federal Taxation and click Edit on the Tax Setup tab.
- Confirm the pre-filled EIN and Company Legal Entity Name.
- Select your Company Type.
- Select your Filing Form (941 or 944) and its effective date.
- Select your Federal Tax Deposit Schedule (Monthly or Semiweekly) and its effective date.
- Answer the Owner Details questions.
- Save. You will see "Federal Taxation Information updated successfully."
[Screenshot: Federal Taxation Tax Setup tab with filing form and deposit schedule selections]
Tax Exemption Setup tab
The second tab shows the federal exemption status for Federal Unemployment Tax, Social Security Tax, and Medicare Tax. Each is an Exempt / Not Exempt dropdown with a View History button for past changes. No default is pre-selected.
You cannot change employer-paid exemptions yourself. The tab shows the current status, and the on-screen guidance reads: "Reach out to support@uzio.com to change the tax status of any employer-paid federal taxes." See the section below.
Expected outcome
- The step shows complete on your setup checklist.
- UZIO deposits and files your federal taxes on the schedule and form you selected.
Warning — deposit schedule: Choosing Monthly when your company is actually a Semiweekly depositor causes UZIO to deposit late, exposing you to a failure-to-deposit penalty of up to 15%. Determine your schedule from IRS Publication 15 (941/944/945 filers) or Publication 51 (943 filers).
If your company is exempt from federal taxes
Exemption status changes go through UZIO Support. UZIO also requires an official Affirmation Letter from the IRS confirming the exemption. To obtain one, contact IRS Customer Account Services by phone, letter, or fax. A written request must include your organization's full name, EIN, and an authorized signature stating the signer's capacity (for example, "John Smith, President"). UZIO Support will tell you how to submit the letter.
Note: Exemption changes are tracked by quarter and can be applied to the current quarter retroactively. Coordinate any mid-year exemption change with your accountant and UZIO Support before the quarter closes.
Still stuck?
To change an employer-paid federal tax exemption, correct your EIN after setup, or ask which mailbox to send an IRS Affirmation Letter to, please reach out to us at support@uzio.com or call +1-571-601-1752. Include your company name, EIN, the change you need, and the effective quarter.
Related articles
- Payroll Setup Overview
- Adding State Tax Information
- Health Premiums and HSA Contributions for 2% S-Corp Shareholders
- Understanding the UZIO Tax Payment Process: how the deposit schedule plays out
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