STATE

Use this subtask to make various choices regarding how a pay type should be treated for each state's income tax when payroll is computed. If a state for which an employee has been set up in the Employee Taxes screen (in Costpoint Employee) is not found here, Costpoint will perform the calculation in accordance with the federal tax setup for this pay type.

Hint:  Assume a pay type is exempt from federal withholding. If you have a state that follows this same rule, you will not need to set the pay type up here because, if the pay type is not found, the system will calculate by the federal rules.

Pay Type

This non-editable field displays the pay type code and description for which you are applying the following taxability rules.

Table Window

State

After selecting the New Line button on the toolbar, enter, or use Lookup to select, the two-letter abbreviation for which you want to set up taxability rules. State IDs are validated against the system's state table.

State Name

The state name is displayed automatically once you have entered the two-letter abbreviation for the state.

Income Taxability

Enter one of the system-provided codes, depending on the state income tax computation for this pay type.

"F" (Fully Taxable) - This pay type has no effect on the calculation of income tax.

"W" (Taxable, Not Subject to W/H) - This pay type is taxable when added to gross pay, but withholding is not required.

"E" (Exempt) - This pay type should be subtracted from gross pay before taxes are computed.

SUTA Taxability

Enter one of the system-provided codes depending on the state unemployment tax computation for this pay type.

"F" (Fully Taxable) - This pay type has no effect on the calculation of state unemployment wages.

"E" (Exempt) - This pay type should be subtracted from state unemployment wages before taxes are computed.