Use this screen to enter general information relating to each of the localities for which the employer withholds Income Taxes. Included is the locality withholding General Ledger account, as well as information relating to the method by which locality taxes are withheld. Also included is the Tax Rate to be used for Income Tax Withholding for Supplemental (Bonus) wages.
Set up this screen when the system is initialized, and modify it any time the locality tax information changes. To modify information for a payroll year that already exists, highlight the applicable field and enter the new data. To add information for a payroll year that does not exist, select the New Line button on the toolbar and enter the applicable information.
Enter up to a six-character alphanumeric code in this user-defined field to uniquely identify this locality code.
Enter a description of the purpose of this code. You can use up to 25 alphanumeric characters.
Enter, or use Lookup to select, the General Ledger account number used to record the locality income tax withheld from employees' paychecks for this locality. The description of the general ledger account will display to the right.
Enter the state in which this locality is located. This value is required if you are using the Ceridian Tax Services (CTS) Interface.
If the locality is used to track county tax for the state of Indiana, enter the county code in this field. If the locality is used to track school district tax for the state of Ohio, enter the four-digit school district code in this field. If the State is ‘PA’ and the locality code represents a Mifflin County tax, this field should be populated with the appropriate community code (community codes can be found in CTS specifications). If the State is ‘PA’ and the locality code represents an Erie tax, this field should be populated with the appropriate community code (community codes can be found in CTS specifications).
Select the tax type code for the record from this drop-down box. Valid options are: "City Income Tax," "County Income Tax," "School District Income Tax," "Other Income Tax," and "City Income Tax (Residence only)." The system will use the value entered here to report the locality type when creating the State Magnetic Media year-end tax files and the CTS tax files.
If the locality is used to track New Jersey State Disability, use this group box to specify whether the plan is a state plan or a private plan. The radio buttons in this group box become available when the State is "NJ."
Select this radio button if the locality is used to track New Jersey State Disability and the plan is a state plan.
Select this radio button if the locality is used to track New Jersey State Disability and you have a private disability plan approved by the New Jersey Department of Labor.
Select this radio button if the locality is not used to track New Jersey State Disability.
Use this group box to specify whether the locality is used to track New York City or Yonkers local tax.
Select this radio button if the locality is used to track New York City local tax. If checked, this will be used by the Create W-2 Table application to calculate the amount of local taxes to be reported in Local wages, tips, etc.
Select this radio button if the locality is used to track Yonkers, NY local tax. If checked, this will be used by the Create W-2 Table application to calculate the amount of local taxes to be reported in Local wages, tips, etc.
Select this radio button if the locality is not used to track New York City or Yonkers, NY local tax.
If you are using the Ceridian Tax Services (CTS) interface to report tax information, enter the four-digit CTS Local Code that corresponds to the local tax. Assignment of a CTS Local Tax Code will trigger the Create CTS Tax File utility to include the tax information in the tax file that is created. This field will only be enabled if you are licensed for the CTS interface. If a CTS Local Code has already been assigned to a contribution code in the Deductions screen, it cannot be assigned to a Costpoint Local Tax code.
If you are using the CTS interface to report tax information and the locality is used to track a supplemental tax, enter the four-digit CTS Local Code that corresponds to the supplemental tax. This field will be enabled only if you are licensed for the CTS interface.
Enter the date when this rate becomes effective. Pay periods having a pay cycle end date the same as, or later than, the Effective Date will use the related tax table rates.
Enter the locality tax withholding percentage that should be used for supplemental earnings (bonus paychecks).
Enter "G" if the locality tax table is computed based on gross pay, "F" if it is computed on employee's Federal Tax withheld, "S" if it is computed based on state tax withheld, or "Y" if it is based on year-to-date. The "Y" method could be used for state disability insurance.
If the Tax Based On is "S," enter, or use Lookup to select, the related state.
If this locality allows a credit against the locality withholding tax liability based upon state taxes withheld, enter the maximum amount (the limit) of the credit here.
Enter the locality exemption allowance (used as a deduction from income) for married filing status. The locality exemption allowance is used in the computation of the amount of locality income tax withheld from each employee paycheck.
Enter the locality exemption allowance (used as a deduction from income) for single filing status. The locality exemption allowance is used in the computation of the amount of locality income tax withheld from each employee paycheck.
Enter the locality exemption allowance (used as a deduction from income) other filing status. The locality exemption allowance is used in the computation of the amount of locality income tax withheld from each employee paycheck.
If the locality allows a credit (reduction in the tax) based upon the number of dependents, enter the credit amount here.
If the locality allows a credit (reduction in the tax) based upon the number of credits claimed, enter the credit amount here.
If there is a maximum amount of local tax withholding that can be withheld per weekly pay period, enter the amount here.
If there is a maximum amount of local tax withholding that can be withheld per bi-weekly pay period, enter the amount here.
If there is a maximum amount of local tax withholding that can be withheld per semi-monthly pay period, enter the amount here.
If there is a maximum amount of local tax withholding that can be withheld per monthly pay period, enter the amount here.
Select this pushbutton to open the Tax ID/Ref No/Vendor Info subtask for the current record.
Changes to this screen update the Local Tax Header (PR_LOCAL_TAX_HS) table.