Multi-State Taxes Subtask
Use this subtask to enter state withholding data for employees who work in multiple states during a single pay period.
The availability of this subtask is contingent upon the pay cycle that is associated with the employee. If the Enable Multi-State Tax Withholding check box is selected on the Manage Pay Periods screen and the pay cycle is associated with the employee record, this subtask is enabled.
The functionality associated with multi-state taxes is intended to allow the proper calculation of withholdings for employees who work in various states in one pay period. W/H State fields display on the Manage Employee Project Timesheet Defaults, Manage Employee Proj-Acct-Grp Timesheet Defaults, Manage Labor-Group Proj-Acct-Group Timesheet Defaults, and Manage Project Timesheet Defaults screens.
Each line of a timesheet can have a different withholding state.
If the employee has a withholding state in the timesheet and no corresponding record on the Manage Employee Taxes screen, the Compute Payroll process uses the default withholding rate for that state.
This subtask allows you to add up to five more withholding states.
Table Window
| Field | Description |
|---|---|
| W/H State |
Enter, or click
|
| State Filing Status |
Enter, or click
See the Tax Tables descriptions in the Costpoint Payroll help for the state filing status descriptions for those other than married and single. You cannot select a status that is not included in the tax tables for the individual states or localities. |
| No of Exemptions |
Enter the number of exemptions claimed by the employee on the state exemption form. This exemption is used in the computation of state withholding taxes. Note that some states make a distinction between regular exemptions and additional withholding deductions. Check the Tax Tables documentation for information on which states require the additional withholding deductions. |
| No of Blindness Exemptions |
Enter the number of blindness exemptions. This field is enabled if the Enable Age/Blind Exemption check box is selected on the Manage State Taxes screen for the withholding state. |
| No of Age 65 Exemptions and Over State Exemptions |
Enter the number of age 65 or over exemptions. This field is enabled if the Enable Age/Blind Exemption check box is selected on the Manage State Taxes screen for the withholding state. |
| No of State Dependents |
Some states give a credit based upon the number of dependents claimed. If this state allows this, enter the number of dependents the employee claims in this numeric field. However, if the withholding State is Puerto Rico (PR), enter the number of dependent exemptions claimed. |
| First-time claimed dependents |
Enter the number of additional dependent exemption being claimed for the first time. This exemption is good only for the calendar year in which the WH-4 claiming the exemption is submitted. The First-time claimed dependents year field is required if the number of first-time claimed dependents is not zero. This field will only be enabled for State of Indiana. |
| First-time claimed dependents year |
Enter the year of the additional dependent exemption being claimed for the first time. The first-time claimed dependent exemption will only be applied in the year specified on this field. This field is required if the number of first-time claimed dependents is not zero and is only applicable for State of Indiana. |
| Number of adopted children |
This field will track the actual number of adopted child dependent exemptions claimed on line 8 of Form WH-4 and will be used in the calculation of Indiana's state withholding. This field will only be enabled for State of Indiana. |
| No of State Credits |
Some states allow a credit (reduction in tax) based upon the number of credits claimed. If this state allows this, enter the number of credits claimed by the employee in this numeric field. |
| State Credit Amount |
If the state allows a credit amount (reduction in the tax), enter the employee's credit amount. The field does not provide a default credit amount value since you must update this field based on the W-4 Form. For example, Iowa allows a credit amount beginning January 1, 2024 and you will need to enter the credit amount based on the 2024 IA W-4 Form. According to the Iowa Department of Revenue website: "Employers who expect to receive updated W-4 forms from employees using the 2024 IA-W-4 form, but who have not yet received the updated W-4 form, may temporarily use $40 as the total allowance amount and $0 as the additional withholding amount when calculating these employees' withholding amounts. Alternatively, for employees who have furnished Form W-4 in any year before 2024, employers may continue to compute withholding based on the information from the employee's most recently furnished Form W-4 but, if they do, must make the following modification: Multiply the number of allowances claimed on line 6 of the pre-2024 W-4 by $40 to determine the amount of allowances. For example, if an employee claims 6 total allowances on a 2023 IA W-4, when calculating the 2024 Iowa withholding the employer should use $240 (6*$40) of total allowances." This field is enabled for Iowa only |
| State Override Amount |
To override the system-calculated state tax withholding amount and use a different amount for the related tax, enter the amount in this numeric field. Costpoint uses this amount for each pay period. |
| State Override Percent |
To override the system-calculated amount and use a percentage for the related tax, enter the percentage in this numeric field. Costpoint uses this amount each pay period. |
| State Additional Amount |
If you want to add to the system-calculated state tax-withholding amount, enter that additional amount in this numeric field. This amount is added to the system-calculated amount each pay period. |
| Colorado Standard Deduction Source | Specify whether the employee wants to use the state standard deduction amounts or the amount from the employee's Colorado DR 0004. Valid options are:
|
| Annual Withholding Allowance | Enter the annual withholding allowance amount. This field is only visible and enabled if you select the Use Amount from the Colorado DR 0004 option. |
| Exempt from Nebraska Minimum Withholding Rule |
Select this check box to indicate that the employee is exempt from Nebraska's minimum withholding rule. Select this check box only if the employee provides the proper documentation justifying the lower withholding amount. The check box is available only if the withholding State for this row is NE (Nebraska) and the Override Low Withholding check box is selected for Nebraska on the Manage State Taxes screen. |
| Veteran Exemption |
Select this check box if the taxable wages will be reduced by the veteran exemption amount if the withholding state is PR (Puerto Rico). |
| Special Deduction |
Select this check box if taxable wages will be reduced by the special deduction amount if the withholding state is PR (Puerto Rico). |
to select, an additional withholding or taxing state.