Sample Setup for Follow Project Locale Option

If you are new to Payroll, you may find it helpful to review an example of how to set up Payroll to implement the Follow Project Locale option.

Lisa Smith's company has contracts in both Massachusetts and Maine. In this example, Lisa works on the ABC Plaza Study, located in Massachusetts, and the HiFi Recreation Center project located in Maine. You want to track Lisa Smith's wages and withholdings based on where Lisa performs the work.

To track wages and withholdings by project locale:

1. In the Navigation pane, select Hubs > Projects > Project.
2. Click the Accounting tab of the Projects form and establish a default project locale for all necessary projects and WBS levels.
   In this example you establish the following locales:

   • Set the Payroll Tax Locale option to MA at the project level of the ABC Plaza Study.
   • Set the Payroll Tax Locale option to ME at the project level of the HiFi Recreation Center.

     Both of these projects have a second level (phase) of WBS. We want the entire project to use the same locale. However, when employees charge time, they must charge time to the lowest level of the WBS. So we have to verify that the Payroll Tax Locale field is blank for all phases of the project. In this way, Vantagepoint will use the locale set at the project level. The default value of the Payroll Tax Locale for all levels is blank, which means that all phases should be set to blank.

3. Click and verify that the Payroll Tax Locale field is blank for all phases of both projects.
4. In the Navigation pane, select Hubs > Employee > Employees.
5. Open the employee record for Lisa Evans and click the Payroll tab of the Employees form.
6. In the Withholding grid, make sure that withholdings for Massachusetts and Maine are set to Active and set the Method to System so that Vantagepoint refers to tax tables when making tax calculations.
7. Set the Locale Method option to Follow Project Locale.
   Both MA and ME display in the State/Local/Tax Jurisdictions grid.
8. Set the Default Project Tax Locale option to MA.
   If Lisa charges time to a project that has no Payroll Tax Locale, or to a project whose locale does not appear in Lisa's Withholding grid, Vantagepoint populates the timesheet with this default locale. For this example, both projects for which Lisa charges time have Payroll Tax Locales and both locales do exist in Lisa's Withholding grid. Therefore, Vantagepoint ignores the Default Project Tax Locale field in this example.
9. Lisa Smith fills out a timesheet:
   • Lisa charges 40 hours to the ABC Plaza Study and leaves the default Payroll Tax Locale of MA selected for this project.
   • Lisa charges 48 hours to the HiFi Recreational Facility and leaves the default Payroll Tax Locale of ME selected for this project.

   Lisa could override either of these defaults by selecting a different locale in the Payroll Tax Locale field. For this example, Lisa keeps the defaults.

10. Submit, approve, and post the timesheet.
11. In the Navigation pane, select Payroll > Payroll Payments, select the payroll run options, and make sure that Lisa Evans is selected for the payroll payment run.
12. Run a draft Payroll Journal and review how withholdings are broken out between Massachusetts and Maine.
13. Process payroll.
14. Print checks.
15. Preview the check and review how withholdings are broken out between Massachusetts and Maine.
16. Assign check numbers.
17. Post payroll.
18. Run the Payroll Posting Log and review how taxable wages are broken out between Massachusetts and Maine.