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Withholding for local taxes

unavailable in ajeraCore unless you have the Payroll add-on

To withhold for a local tax (such as city, county, or school district taxes), follow these instructions:

Set up the tax, being sure to do the following:

In the Description field, type the name of the tax.
In the Type field, select Local.
In the W-2 Form Boxes 10-20 field, select the appropriate W-2 Form box (Box 18-19 local 1 or Box 18-19 local 2).
In the W-2 Box Description field, type the description (up to 5 characters) to print on the W-2 form.

Add the tax for each employee (Setup > Employees > Payroll Taxes tab > Additional Taxes table).
Add the paycheck.
Change the paycheck, as needed. Ajera automatically calculates taxable, subject-to, and tax amounts for the local tax, but you may need to change them.

For example, you may need to change the amounts if an employee works in more than one local tax district, or if an employee pays the tax only for work actually performed in the local tax jurisdiction.

Note:

Change taxable, subject-to, and tax amounts only after making any other changes on the window, as other changes cause Ajera to recalculate these amounts.

When printing W-2 forms (Company > Government Reporting > Form W2), be sure to do the following to print W-2 forms for each local tax:

Select the check box to the left of the Local Line 1 field. Click the button and select the local tax you want to print.
To print a second local tax, select the check box to the left of the Local Line 2 field. Click the button and select the local tax you want to print.

Note:

If the local tax does not appear in the Tax List window, from Company > Payroll > Taxes, select the tax and click the Edit button. In the W-2 form boxes 10-20 field, select Box 18-19 Local 1 or Box 18-19 Local 2.

To accumulate and print an amount for all local taxes on one line on the W-2 form, ensure that you select the check boxes for the Local Line 1 and/or Local Line 2 fields but leave both fields blank.

On the W-2 form, Box 18 includes the taxable amount for all local taxes for that employee. Box 19 includes total local tax amounts. Box 20 displays the locality name of the last tax entered.