Local Tax Codes
Use this option to create, review, and edit Local Tax tables for use during payroll processing. The table is based on employee filing statuses and pay frequencies. You can set up and modify exemptions, allowances, and tax rates, including flat percentages or graduated rates.
When adding or changing employee local tax information, you must set up a table for each municipality you anticipate needing for the Location Code field. Contact your local Earned Income Tax offices for information concerning the applicable tax rates and regulations.
Use the Future Local Tax Codes option to update your Local Tax records accordingly as local rates change. This option allows you to modify table records without affecting live data until the specified effective date. For more information, refer to Future Tax Table Options.
On the start page, select Human Resources.
Select Reference Tables, then from the Payroll menu, select Local Tax Codes.
Enter the search criteria to find the required job class records, then select Search.
To add a record, select Add new. Refer to Field descriptions, enter valid information in the required fields, and select Accept.
To edit a record, select the record and select Accept. Update the information and select Accept.
To delete, select the record, select Delete, then Yes.
To generate a report:
Select Print and then select:
Print to include all the information in the Local Tax Codes table.
Defaults to include only the defaults in the Local Tax Codes table.
Select Accept and then select a Destination:
Select File to create the report in .rpt format. In the File Name field, you can change the default file name.
Select Screen to download the report in .pdf format.
Select Excel to download the report in .xls format. Select the required Excel Options.
Select OK.
Download the .rpt file from the View Files page.
Save the .pdf or .xls file.
For more information about the Print option, refer to Print Reports.
The default file name of the Local Tax Codes report is localtax.rpt.
Field descriptions
The following table describes the Ohio-specific fields on the following tabs of the Local Tax Codes page:
For information about other fields on the Local Tax Codes page, refer to Local Tax Codes.
General tab
Field | Description |
|---|---|
Location Code | The code identifying the locality of the table you are entering. The limit is two characters. OH-specific information:
|
Check Title | The title of the tax as it will appear on payroll checks. Usually, this is a shortened version of the Description. The limit is 10 characters. |
Subjective Gross | The type of gross used for this taxation. Valid values:
|
Include Medicare Pickup Benefit Amount | Indicates that the payroll calculation process must include the benefit amount as taxable for the local tax calculation for deductions with P - Deduction is a Medicare pickup deduction selected in the Cafeteria Plan field on the Employee tab of the Deduction Table page. |
Original Tax Rate | The tax rate before the reciprocity agreement. This applies if an employee lives in one state and works in another. This agreement between the two separate states allows an employee in one state to request an exemption from tax withholding in the state where their job is located. |
Tax Rate Credit | Tax credit granted by the reciprocity agreement. This depends on whether the employee lives in one state and works in another. |
Local Crosswalk | The crosswalk used for local taxes. |
Vendor tab
Field | Description |
|---|---|
Vendor Number | Unique code assigned to an individual vendor and used to identify which vendor should be paid for the deducted amounts with the Fund Accounting Interface Batch payables. |
Pay Frequency | The pay frequency for the vendor associated with the tax detail. Valid values:
Codes X, Y, and Z can be used to represent pay frequencies that are not addressed by the other selections. |
Reference Code | An optional field to enter the name of a taxing agency, such as RITA or CCA, to be used when creating the W2 local tax electronic file. This code must be the same for all of the local tax code records associated with the taxing agency. When creating the W2 local tax electronic file, ensure the following:
The system checks the Municipal Code field in the first Local Tax table record containing that Reference code to determine if a local tax code is RITA, CCA, or neither. If the first two characters of the Municipal Code for that Local Tax table record are R0 or W0, the W2 file is a RITA file. If the first two characters of the Municipal Code are CC, the W2 file is a CCA file. The limit is 10 characters. |
Municipal Code | The Municipal code required by the local tax agency for W2 filing. This field must be populated for every local location for which the taxing agency has been entered under the Reference code. The limit is five characters. |
Local FIPS Code | Enter the local FIPS code required by the local tax agency for W2 filing. Update this field before creating W2 records. The limit is six characters. |
Locality Name | Enter the reporting entity required by the local tax agency for W2 filing. Update this field before creating W2 records. The limit is 40 characters. |
Tax Detail
When adding or changing a Local Tax record, click Tax Detail to display the Local Tax Table detail page. This section lets you define information for calculating local tax withholdings based on earnings ranges.
Each row on the page displays tax deduction figures that apply to employees whose wages are less than or equal to the amount in the row’s Earnings field but are greater than the Earnings field value in the previous row.
For information about the fields on the Local Tax Table page, refer to Local Tax Codes.
Credits
When adding or changing a Local Tax table record, click Credits to display the Local Tax Credits page. Use this page to enter the amount to be deducted from an employee’s local tax due based on the number of dependents claimed.
For information about the fields on the Local Tax Credits page, refer to Local Tax Codes.