Payroll Tax Locale and Withholdings

If your enterprise uses the Payroll Tax Locale feature, Vantagepoint uses information about where work is performed to track taxable wages and to calculate and track withholdings.

You can track locations where work is performed for analysis or insurance purposes, or to track taxable wages for use by the State Unemployment Insurance (SUI) and W2 reports.

You set the Payroll Tax Locale option to one of the following settings:

Setting Description
Follow Project Locale You track wages and withholdings based on the project to which an employee charges time.
Percent of Wages You track wages and withholdings based on an estimated breakdown, by percent, of an employee's gross wages.
None Your enterprise can choose not to track taxable wages and withholdings by project locale.

Only Include Local Jurisdictions Option

When you select the Only Include Local Jurisdictions option on the Payroll tab of the Employees hub, only non-federal and non-state withholdings for the employee display in the State/Local/Tax Jurisdictions grid of the Payroll tab. State withholdings set up for the employee do not display in the grid when this option is selected, and Vantagepoint withholds state withholdings as a normal withholding at 100%, rather than based on a percentage established for the withholding in the State/Local/Tax Jurisdictions grid.

Because of this distinction, the method that Vantagepoint uses to determine withholdings when the Only Include Local Jurisdictions option is selected is slightly different than when this option is not selected.

The following information applies if either Follow Project Locale or Percent of Wages option is selected as the Payroll Tax Locale: Follow Project Locale setting.

  • State withholdings are not included in the State/Local/Tax Jurisdictions grid.
  • The Payroll Tax Locale entered on the timesheet does not have an impact on state withholdings for the employee.
  • The lookup for Default Project Locale does not include withholdings defined with a type of State. For example, an employee has CT listed as a state withholding and 2 counties listed for local withholdings. On this employee's record in the Employees hub, on the Payroll tab, Only Include Local Jurisdictions is selected. Vantagepoint associates 100% of wages with the state withholding of CT. Vantagepoint then looks to the State/Local/Tax Jurisdictions grid to calculate the percent of wages associated with each county to calculate the county tax.

Payroll Locale List Report

In My Stuff > Reporting, the payroll report type includes a Payroll Locale List, which you can use to review the tax locales, which are typically states, for which you must provide employee payroll information.

If Your Enterprise Converted to Vantagepoint

If this is the first time that you are using the Payroll application after a conversion from a previous Deltek product, you must complete at least one payroll processing cycle before you can use the payroll tax locale feature.