Local Tax Table

Use this option to create Local Tax tables for use during payroll processing. As with the state tables, the Local Tax Table page requires you to base tables on employees' filing statuses and pay frequencies. You can set up and change exemptions, allowances, and tax rates, which can include either a flat percentage or graduated rates.

You must set up a table for each municipality you anticipate needing for the Current Locality field when adding or changing an employee's local tax information. Contact your Earned Income Tax offices for information concerning the applicable tax rates and regulations.

As local rates change, you can change your Local Tax records accordingly using the Human Resources > Reference Tables > Future Changes > Local Tax Codes option. This option allows you to change table records without impacting live data prior to the effective date you define. For more information, refer to Future Tax Table Options chapter in your Human Resources manual.

The Local Tax Table report's default file name is localtax.rpt.

Menu Path: Human Resources > Reference Tables > Payroll > Local Tax Codes

Action Bar Items

The Action Bar in the Local Tax Table page displays the following items when you are adding or changing a table record:

Tax Detail	Displays the Local Tax Data detail page section for defining the information used in calculating local tax withholdings. You use this section to enter earnings ranges and their associated tax amounts or percentages. For information on the section's fields, refer to the Fields below.
Credits	Displays the Local Tax Credits detail page for entering the amount to deduct from an employee's local taxes based on the number claimed. For an explanation of how the credits are entered, refer to the Fields below.

The following items appear both on the Local Tax Table Detail page and the Local Tax Credits page:

Insert Row	Adds a blank row at the cursor's current position.
Delete Row	Deletes the row at the cursor's current position.

Adding a table record

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
Click Add New.
Complete the required fields. For details, refer to the Fields section below.
Click OK to save the record.

Changing a record

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
In the Search Criteria section, enter criteria identifying the records to list, and then click Find.
To display a record, select the record in the List section, and then click OK.
Change the desired fields.
Click OK to save the record.

Deleting a record

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
In the Search Criteria section, enter criteria identifying the records to list, and then click Find.
In the page's List section, select the record to delete.
Click Delete.
In the Confirmation dialog, click Yes to delete the record.

Generating a table report

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
In the Search Criteria section, enter criteria identifying the records to list, and then click Find.
In the page's List section, select the record to delete.
Click Print.
In the Print window, specify how you want to generate the report, and then click OK. The report's default file name is localtax.rpt.

Changing a Tax Detail row

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
In the Search Criteria section, enter criteria identifying the records to list, and then click Find.
To display a future changes record, select the record in the List section, and then click OK.
Click Tax Detail on the Action Bar to display the Local Tax Table detail page.
In the List section, select the row of tax information you wish to change.
Make changes as needed.
When finished, click OK to save the changes and return to the Future Local Tax page.

Inserting a new Tax Detail row

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
In the Search Criteria section, enter criteria identifying the records to list, and then click Find.
To display a future changes record, select the record in the List section, and then click OK.
Click Tax Detail on the Action Bar to display the Local Tax Table detail page.
Click Insert Row on the Action Bar, and then enter the correct information in the Earnings, Tax Amount and Tax Percent fields.
When finished, click OK to save the record.

Deleting a Tax Detail row

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
In the Search Criteria section, enter criteria identifying the records to list, and then click Find.
To display a future changes record, select the record in the List section, and then click OK.
Click Tax Detail on the Action Bar to display the Local Tax Table detail page.
In the List section, select the row of tax information you wish to delete, and then click Delete Row.

Note

Be sure that you are ready to delete. Unlike most Delete procedures, a Confirmation dialog will not display. Once you click Delete Row, the row will delete.

Changing a Tax Credit row

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
In the Search Criteria section, enter criteria identifying the records to list, and then click Find.
To display a future changes record, select the record in the List section, and then click OK.
Click Credits on the Action Bar to display the Local Tax Credits page.
In the List section, select the row of tax information you wish to change.
Make changes as needed.
When finished, click OK to save the changes and return to the Future Local Tax page.

Inserting a new Tax Credit row

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
In the Search Criteria section, enter criteria identifying the records to list, and then click Find.
To display a future changes record, select the record in the List section, and then click OK.
Click Credits on the Action Bar to display the Local Tax Credits page.
Click Insert Row on the Action Bar, and then complete the Credits field as needed.
When finished, click OK to save the record.

Deleting a Tax Credit row

Select Human Resources > Reference Tables > Payroll > Local Tax Codes to display the Local Tax Codes page.
In the Search Criteria section, enter criteria identifying the records to list, and then click Find.
To display a future changes record, select the record in the List section, and then click OK.
Click Credits on the Action Bar to display the Local Tax Credits page.
In the List section, select the row of tax information you wish to delete, and then click Delete Row.

Note

Be sure that you are ready to delete. Unlike most Delete procedures, a Confirmation dialog will not display. Once you click Delete Row, the row will delete.

Fields

Local Tax Data Section

Use this section to identify the Local Tax table record and enter exemption and allowance amounts that apply.

General Tab

Field	Description
Location Code	Code identifying the locality of the table you are entering. Character/2 OH Only: School - Use 4 character state municipal tax code as the location codes. Residential - Use 5 character residential code for the location codes. Worksite - Use 5 character residential code with a 'W' suffix to distinguish between residential and worksite.
Description	Title or description of the tax table. You may include the name of the locality and, if desired, other information to identify the table, for example, PENNSVILLE ‑ MARRIED. Character/25
Check Title	Title of tax as it will appear on payroll checks. Usually, this is a shortened version of the Description. Character/10
Pay Frequency	Setting determining what groups are calculated. These codes, which should correspond with those entered in employees’ Payroll pages, combine with the location code and filing status to identify the tax table to use. You must create a separate table for each combination of code, frequency, and status. Select: A - Annual B - Bi-weekly M - Monthly S - Semi‑monthly W - Weekly X - X User‑defined Y - Y User-defined Z - Z User-defined The codes X, Y, and Z can be used to represent pay frequencies not addressed by the other selections.
Filing Status	Tax filing status that applies to the tax table’s rates. Unless the locality uses other status designations, we recommend that you enter either M (for Married), S (for Single), or W (Married Filing Single). Character/1 If other factors apply, you can define your own codes and enter the table’s deductions, earnings, and other data accordingly. This field coordinates with information in the Employee Information page’s Taxes tab to determine the local tax table to use during payroll processing. The tax filing status combines with the locality code and pay frequency to identify the Local Tax Table record.
Liability Account	Object or Account code of the liability account used for local tax withholding in the Fund Accounting System. Integer/8
Standard Deduction Rate	Percentage for calculating the deduction employees have taken from their gross wages (Standard Deduction = Standard Rate x Earnings). Enter the percentage in decimal format (1.75% = 0.0175). Decimal/6,5 This rate is used only in conjunction with the Standard Minimum and Standard Maximum fields, which determine whether the calculated deduction applies or if the minimum or maximum amount should be applied instead. If the local tax does not allow for a deduction rate, you may leave the three standard fields at their zero defaults. Also, if there is no standard minimum or maximum, the field should be zero. This is not common in local taxes.
Local Tax Type	Type of tax assigned to this code. Select: S - School R - Residential W - Worksite O - Other
Subjective Gross	Type of gross used for this taxation. Select: TT - Total Gross FI - FICA Tax Gross MD - Medicare Tax Gross FD - Federal Tax Gross ST - State Tax Gross LC - Local Tax Gross DI - Disposable Income SP - Subject Pay Gross
Standard Minimum	Least amount in dollars and cents that can be deducted from an employee’s gross wages, regardless of the amount calculated with the standard deduction rate. If a minimum does not pertain, you may accept the zero default. Decimal/10,2 Example: If an employee earns $20,000 and the standard deduction rate is 12%, the deduction from the taxable wages would be $2,400, in which case the taxable wages would be $17,600 (20000 ‑ 2400). However, if the standard minimum is $3,000, the taxable wages would be $17,000 (20000 ‑ 3000), since the standard minimum has priority over the calculated value. This is not common in local taxes.
Standard Maximum	Largest deduction in dollars and cents that can be taken from employees’ gross wages, regardless of the amount calculated by the standard rate. If the local tax does not allow for a standard maximum, leave the field as its zero default. Decimal/10,2 Example: If an employee earns $45,000 and the standard deduction rate is 10%, the deduction calculated would be $4,500. In this case, the taxable wages would be $40,500 (45000 ‑ 4500). However, if the maximum deduction is $4,000, the taxable earnings would be $41,000 (45000 ‑ 4000), since the maximum has priority over the calculated value. If there is no standard minimum or maximum this should be zero. This is not common in local taxes.
Tax Status Exemption	Amount to reduce gross wages not taxable by the local government, per pay, based on the entry in the Tax Filing Status field, which usually refers to the employee’s marital status. Decimal/10,2 If the local tax guidelines list an annual amount, prorate your entry by the number of pays issued annually (Exemption Per Pay = Annual Exemption ÷ Number of Pays). If the tax does have this type of exemption, leave the field at its zero default.
Dependent Allowance	Amount to reduce gross wages in dollars and cents per pay for each eligible dependent. Enter the allowance in accordance with the pay frequency. For example, if the local tax guidelines list an annual allowance, prorate the entry using the equation: Per Pay Allowance = Annual Allowance ÷ Number of Pays. Decimal/10,2 During payroll processing, the system multiplies the amount you enter by the value in the Dependents field in the Local section of the Employee Information window’s Taxes tab (Total Dependent Allowance = Dependent Allowance x Number of Dependents). This amount is then subtracted from the gross wages to determine the taxable earnings. Leave the field at its zero default if a credit applies for each dependent, rather than a pretax allowance, or if the local tax laws do not provide a dependent allowance. Example 1: If a tax table has a dependent allowance of $20 and an employee’s Taxes tab lists three dependents, gross wages would be reduced by $60 (20 x 3) each pay. Example 2: If the local tax guidelines list an annual dependent allowance of $600, enter 11.53 ($600 ÷ 52 = $11.53) for a table with a weekly pay frequency or 23.07 ($600 ÷ 26 = $23.07) with a biweekly frequency.
Original Tax Rate	Tax rate before the reciprocity agreement. This applies if an employee lives in one state and works in another. This is an agreement between those two separate states that allows an employee in one state to request exemption from tax withholding in the state their job is located.
Tax Rate Credit	Tax credit granted by the reciprocity agreement. This is dependent on the employee living in one state and working in a different state.
Supplemental Tax Percent	Percentage to apply against an employee’s supplemental wages to determine the additional tax due. A supplemental wage is compensation paid in addition to regular wages, such as a bonus or severance pay. Enter the percentage in decimal format (1.75% = 0.0175). Decimal/7,6 During payroll setup, you can designate a supplemental pay by entering a P (for percentage) in the Tax field on an employee’s timecard in the row associated with the supplemental pay’s pay code. This overrides a rate’s default pay frequency. The system then calculates the supplemental tax and adds it to the regular tax determined by the appropriate table (Total Tax Withheld = Regular + Supplemental). Leaving the zero default in this field results in no additional local tax being withheld on supplemental earnings. For the specific rates that apply to supplemental wages, refer to your local tax guidelines.
Local Crosswalk	Enter the crosswalk to use for local taxes.

Vendor Tab

Field	Description
Vendor Number	Unique code assigned to an individual vendor and used here 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. Select: A - Annual B - Bi-weekly M - Monthly S - Semi‑monthly W - Weekly X - X User‑defined Y - Y User-defined Z - Z User-defined The codes X, Y, and Z can be used to represent pay frequencies not addressed by the other selections.
Reference Code	Optional field to enter the name of a taxing agency, such as RITA or CCA, to be used use when creating the W-2 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 W-2 local tax electronic file, ensure the following: This field contains a valid RITA or CCA Reference code. The same code is entered in the Local Tax Reference Code to Include field on the Create W2 Electronic File page. 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 W-2 file is a RITA file. If the first two characters of the Municipal Code are CC, the W-2 file is a CCA file. Character/10
Municipal Code	Enter the Municipal code required by the local tax agency for W-2 filing. This field must be populated for every local location for which the taxing agency has been entered under the Reference code. Character/5
Local FIPS Code	Enter the local FIPS code required by the local tax agency for W-2 filing. Character/6 Update this field before creating W-2 records.
Locality Name	Enter the reporting entity required by the local tax agency for W-2 filing. Character/40 Update this field before creating W-2 records.

Local Tax Data Page

When adding or changing a Local Tax record, click Tax Detail on the Action Bar 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 in 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.

Field	Description
Location Code	The locality for the record associated with the tax detail. Display-only.
Description	The locality description for the record associated with the tax detail. Display-only.
Pay Frequency	The pay frequency for the record associated with the tax detail. Display-only.
Filing Status	The tax filing status for the record associated with the tax detail. Display-only.
Earnings	The highest earnings in dollars and cents subject to the tax rate listed on the same line. Decimal/10,2 For example, if an employee’s taxable earnings are $32,500 and the table lists $32,000 on one line and $33,000 on the next, the system uses the rate from the line with $33,000 during payroll processing. If the locality uses a single percentage, as opposed to graduated rates, enter 9999999.99 in the first Earnings field, and then enter the single rate in the Tax Percent column. The last entry in the table must have earnings of 9,999,999.99.
Tax Amount	Amount in dollars and cents of the tax due based on the earnings on the same line. Decimal/10,2 This rate applies when an employee’s taxable wages are within the range of the previous line's earnings and the earnings listed on the current line. If a tax percentage applies instead of an amount, leave each field in this column at its zero default.
Tax Percent	Percentage to use in calculating taxes during a pay run. Enter the percentage in decimal format (1.75% = 0.0175). Decimal/7,6 This rate applies up to the taxable wages shown in the earnings on a line. If a tax amount applies instead of a percentage, leave each field in this column at its zero default. If an amount and a percentage apply, enter both. With a percentage rate, the system calculates the tax as follows: Local Tax Due = Earnings x Rate.

Local Tax Credits Page

When adding or changing a Local Tax table record, click Credits on the Action Bar to display the Local Tax Credits page. Use this page to enter the amount to deduct from an employee’s local tax amount due based on the number of dependents claimed.

Field	Description
Location Code	The locality for the record associated with the tax credit. Display-only.
Description	The locality description for the record associated with the tax credit. Display-only.
Pay Frequency	The pay frequency for the record associated with the tax credit. Display-only.
Filing Status	The tax filing status for the record associated with the tax credit. Display-only.
Credits	Amount in dollars and cents to deduct from the tax amount due, based on the number of dependents recorded in the Employee Tax Setup Information page’s Local section. Decimal/10,2 During a pay run, the system calculates the local tax, and then uses the number of dependents to look up the credit that should be subtracted based on the order of entries in the Local Tax Credits page (Tax Withheld = Gross Tax - Tax Credit). The entry should equal the total credit for the number of dependents claimed. Therefore, the top row is for one dependent, the second row for two dependents, and so on. If local tax guidelines call for an annual credit, prorate the credit amount to correspond with the table’s pay frequency. If credits are not allowed, leave the fields at their blank defaults. Example 1: If you have a biweekly table and the local tax allows $5 per week for the first dependent and $4 for each additional dependent, enter 5 in the first line, 9 ((5 x 1) + (4 x 1)) in the second, 13 ((5 x 1) + (4 x 2)) in the third, and so forth. Example 2: If an annual credit of $250 per dependent is allowed, you should pro-rate the credit by dividing it by the number of pays issued annually (Credit Per Pay = Credit ÷ Number of Pays). For a monthly pay, enter 20.83 (250 ÷ 12) in the first line for one dependent, 41.67 (20.833 x 2) in the second line for two dependents, and so forth.