Contents of the Manage Local Taxes Screen

Use the fields and options to configure the Manage Local Taxes screen.

Field	Description
Locality	Enter a code in this user-defined field to uniquely identify this locality code. In the field to the right, enter a description of the purpose of this code.
State	Enter, or click to select, the state in which the locality is located.
Philadelphia	Select this checkbox if this code is used to track Philadelphia, PA local tax withholding. If selected, the Create State W-2 File application will report the associated local wages and withholding in the Pennsylvania electronic W-2 file.

Local Setup

Field	Description
Tax Paid By	Use this drop-down list to select whether the tax is paid by the Employee or the Employer. If the local tax code is configured as employer-paid, you may choose to treat the employer-paid portion of the employee's required contribution as taxable wages by selecting the applicable tax types in the Include employer-paid pickup in employee's taxable wages group box.
Tax Type	From the drop-down list, select the tax type code for the record. Valid options are: Child Care Contribution Tax City Income Tax City Income Tax (Residence only) County Income Tax Family Leave Insurance Local Services Tax School District Income Tax State Disability Insurance Supplemental Workforce Fund Transit Tax Unemployment/Health Care Workforce Dev Partnership Fund Other Income Tax Costpoint uses the value you enter here to report the locality type when creating State Magnetic Media year-end tax files.
Jurisdiction Code	Enter the appropriate code as required by your state: Indiana: If the locality is used to track county tax for the State of Indiana, enter the county code in this field. For Indiana, the label of this field is County Code (IN) in Form view. Michigan: For Michigan W-2 files, if City of Detroit information is included, enter 170 in this field. For Michigan, the label of this field is City Code (MI) in Form view. Ohio: If the locality is used to track school district tax for the State of Ohio, enter the four-digit school district code in this field. This field will only be editable for an Ohio local tax if the Tax Type is School District Income Tax For Ohio, the label of this field is School District (OH) in Form view. If you enter OH (Ohio) in the State field and select City Income Tax (Residence Only) from the Tax Type drop-down list, the Jurisdiction Code field changes to City Code (OH). If you enter OH (Ohio) in the State field and select R.I.T.A. from the Ohio Tax Collection Agency drop-down list, enter a valid three-digit RITA municipality code in the City Code (OH) field. For the three-digit RITA municipality code, please refer to the following link: https://www.ritaohio.com/TaxRatesTable. Pennsylvania: If the State is Pennsylvania, enter the 2-digit District Political Subdivision (PSD) Code assigned to the local income tax collector. When W-2s are generated, this value will be used to build the Box 20 locality name. The first six digits of the Box 20 locality name will be populated with the employee's Resident PSD Code. The final two digits of the Box 20 locality name will be populated with the 2-digit District PSD Code. You may enter more than 2 digits in this field, but only the first two digits will be used. For Pennsylvania, the label of this field is District PSD Code (PA) in Form view.
Withholding Account	Enter, or click to select, the General Ledger account number used to record the locality income tax withheld from employees' paychecks for this locality. The description of the general ledger account displays to the right.
Accrual Account	Enter, or click to select, the accrual account for the employer tax. This field is disabled if you select Employee in the Tax Paid By drop-down list.
Expense Account	Enter, or click to select, the expense account for the employer tax. This field is disabled if you select Employee in the Tax Paid By drop-down list.

W-2 Reporting

Field	Description
W-2 Box 14 Usage	Use this drop-down list during the creation of W-2s. Box 14 of the W-2 has five lines to list the applicable local tax amounts. Select the line number that you want to have this local tax assigned to when creating W-2s. If this local tax is not applicable for Box 14 usage, select Not Applicable. Valid options are: Line 1 Line 2 Line 3 Line 4 Line 5 Not Applicable The default is Not Applicable.
Box 14 Description	Enter a maximum of 9 alphanumeric characters to be used as Box 14 description for the selected line number in the W-2 Box 14 Usage drop-down list.
New York W‐2 Reporting	From the drop-down list, select whether the local tax code is used to track New York City or Yonkers local tax. Valid options are: New York City: Select this option if the local tax code is used to track New York City local tax. If selected, this is used by the Create W-2 Table application to calculate the amount of local taxes to be reported in Local wages, tips, and others. Yonkers: Select this option if the local tax code is used to track Yonkers, NY local tax. If selected, this is used by the Create W-2 Table application to calculate the amount of local taxes to be reported in Local wages, tips, and others. Not Applicable: Select this option if the local tax code is not used to track New York City or Yonkers, NY local tax.
Ohio Tax Collection Agency	From the drop-down list, select the Tax Collection Agency for Ohio local taxes. Valid options are: R.I.T.A.: Select this option if the Ohio local tax uses Regional Income Tax Agency (R.I.T.A.). C.C.A.: Select this option if the Ohio local tax uses Central Collection Agency (C.C.A.). Not Applicable: Select this option if the local tax does not use R.I.T.A. or C.C.A.

Tax Type Details

Field	Description
Disability Insurance Type	If the locality is used to track New Jersey State Disability, select whether the plan is a state plan or a private plan. The options in this group box become available when the State is NJ. Valid options are: State Plan: Select this option if the locality is used to track New Jersey State Disability and the plan is a state plan. Character Code: Enter the code for the Ohio local tax. Private Plan: Select this option if the locality is used to track New Jersey State Disability and you have a private disability plan approved by the New Jersey Department of Labor. Not applicable: Select this option if the locality is not used to track New Jersey State Disability.
Family Leave Insurance Type	Use this group box to designate the type of Family Leave Insurance (state or private) being tracked by the Costpoint Locality Code. Family Leave Insurance options disable if you select any other Tax Type option. Valid options are: State Plan: Select this option if the family leave insurance being tracked by this Costpoint Local Tax Code is provided by the state. Private Plan: Select this option if the family leave insurance being tracked by this Costpoint Local Tax Code is provided by an agency other than the state. Not Applicable: This option defaults automatically if you select a Tax Type other than Family Leave Insurance.

Payroll Tax Interface

Field	Description
Include in Export Payroll Taxes	Select this checkbox if the tax data associated with the locality should be included in the Export Payroll Taxes process. When you select this field, the screen enables the Tax Service Code field.
Tax Service Code	Enter the tax code which identifies the local tax in your payroll tax service system. This value is included when you export the locality’s tax amounts to the Payroll Tax Service provider. This field is only available when you select the Include in Export Payroll Taxes checkbox.

Include employer-paid pickup in the Employee's taxable wages

This setting ensures compliance with IRS regulations on the tax treatment of employer pickup contributions for state-mandated paid family and medical leave programs. This controls which tax types are impacted by the pickup amount (added to employee's taxable wages for those tax types). These checkboxes apply only to employer-paid local tax codes.

Field	Description
Federal Income Tax	When selected, if the employer pays more than the required share of the employee's contribution, the excess amount (employer pickup) will be added to the employee's federal taxable wages.
Social Security (EE/ER)	When selected, if the employer pays more than the required share of the employee's contribution, the excess amount (employer pickup) will be added to the employee's social security taxable wages.
Medicare (EE/ER)	When selected, if the employer pays more than the required share of the employee's contribution, the excess amount (employer pickup) will be added to the employee's Medicare taxable wages.
Federal Unemployment Tax (FUTA)	When selected, if the employer pays more than the required share of the employee's contribution, the excess amount (employer pickup) will be added to the employee's FUTA taxable wages.
State Income Tax	When selected, if the employer pays more than the required share of the employee's contribution, the excess amount (employer pickup) will be added to the employee's state taxable wages.
State Unemployment Tax (SUTA)	When selected, if the employer pays more than the required share of the employee's contribution, the excess amount (employer pickup) will be added to the employee's SUTA taxable wages.

Local Tax Details

Field	Description
Effective Date	Enter, or click to select, the date on which this rate becomes effective. Pay periods having a pay cycle end date the same as, or later than, the Effective Date use the related tax table rates.
Tax Based On	From the drop-down list, select the basis for computing the withholding amount for this local tax. Valid options are: Gross Pay: Select this option to compute the local tax withholding based on gross pay. Federal Tax Withholding: Select this option to compute the local tax withholding based on the employee's federal tax withholding. State Tax Withholding: Select this option to compute the local tax withholding based on the employee's state tax withholding. YTD Tax: Select this option if the locality tax table is based on year-to-date tax. (This method could be used for state disability insurance.) SUTA Taxable Wages: Select this option if the locality tax table is based on state unemployment taxable wages. SUTA Subject Wages: Select this option to compute the local tax withholding based on the employee's SUTA subject wages. State % of SS Taxable Wages: Select this option to compute the local tax withholding on the employee's Social Security wages for the selected state.
Supplemental Tax Rate	Enter the locality tax withholding percentage that is used for supplemental earnings (bonus paychecks).
State W/H Credit Limit	If this locality allows a credit against the locality withholding tax liability based upon state taxes withheld, enter the maximum amount (the limit) of the credit here.
One Time Annually	Use this field to define the frequency of the local tax as of the effective date. Select this checkbox if the local tax should be withheld once annually. If this checkbox is not selected, the local tax calculation occurs every pay period.
Annual Ceiling Limit	Use this field to specify the local tax's annual ceiling limit as of the effective date. When calculating the local tax, the withholding for the payroll year must not exceed the amount in this field.
Tax Multiplier Rate	Enter the rate to be multiplied against the calculated local tax withholding amount to derive the final withholding tax amount. This field is enabled only if the State is New York (NY) and New York W-2 Reporting option is set to Yonkers.
Credit Amount	If the locality allows a credit (reduction in the tax) based upon the number of credits claimed, enter the credit amount here.
Dependent Credit Amount	If the locality allows a credit (reduction in the tax) based upon the number of dependents, enter the credit amount here.
Required Employer Share %	Enter the statutory employer share of the premium for a state-mandated paid family and medical leave program. This percentage is used to determine whether the employer is contributing more than the required amount (i.e., making a pickup). Any excess will be treated as additional taxable wages to the employee. This field applies only to employer-paid local tax codes.
Exempt Amount Married	Enter the locality exemption allowance (used as a deduction from income) for married filing status. The locality exemption allowance is used in the computation of the amount of locality income tax withheld from each employee paycheck.
Exempt Amount Single	Enter the locality exemption allowance (used as a deduction from income) for single filing status. The locality exemption allowance is used in the computation of the amount of locality income tax withheld from each employee paycheck.
Exempt Amount Other	Enter the locality exemption allowance (used as a deduction from income) other filing status. The locality exemption allowance is used in the computation of the amount of locality income tax withheld from each employee paycheck.
Exempt Amount Dependent	Enter the dependent exemption allowance (used as a deduction from income) for employee's dependents. The locality exemption allowance is used in the computation of the amount of locality income tax withheld from each employee paycheck.
Exempt Amount First-Time Claimed Dependent	Enter the first-time claimed dependent exemption amount (used as a deduction from income) for employee's first-time claimed dependents. The locality exemption allowance is used in the computation of the amount of locality income tax withheld from each employee paycheck.
Exempt Amount Adopted Children	Enter the adopted child dependent exemption allowance (used as a deduction from income) for the employee's adopted children. The locality exemption allowance is used in the computation of the amount of locality income tax withheld from each employee paycheck.
Weekly Ceiling Amount	If there is a maximum amount of local tax withholding that can be withheld per weekly pay period, enter the amount here.
Bi-weekly Ceiling Amount	If there is a maximum amount of local tax withholding that can be withheld per bi-weekly pay period, enter the amount here.
Semi-Monthly Ceiling Amount	If there is a maximum amount of local tax withholding that can be withheld per semi-monthly pay period, enter the amount here.
Monthly Ceiling Amount	If there is a maximum amount of local tax withholding that can be withheld per monthly pay period, enter the amount here.

Subtask

Subtask	Description
Tax ID / Reference Numbers / Vendor Information	Click this link to open the Tax ID/Reference Number/Vendor Information subtask for the current record.