Use the Special Calculations tab of the Local Tax Information dialog to enter rates and amounts needed for the calculation of specific withholding amounts during payroll check processing. The fields on this tab apply to jurisdictions that do not use a tax table to compute their withholding tax.
Choose Setup > System Configuration > Payroll Tax Information > Local. In the Local Tax Information dialog, select a locality and then choose the Special Calculations tab.
See also: Local Tax Information dialog
Fields & buttons
Shows the name of the currently selected jurisdiction.
Shows the name of the currently selected state.
Shows the effective date for the current tax values for the selected jurisdiction (as specified on the General tab of the Local Tax Information dialog).
Select a tax type for the currently selected locality from the drop-down list. The options are City, County, Other, or School District.
Use the fields in this group box to indicate how the selected jurisdiction calculates income tax, if this information is not already specified in a tax table.
Percent of wages
If the jurisdiction's income tax is a fixed percentage of taxable wage (gross pay less allowances), enter the applicable percentage in this field.
Percent of federal W/H
If the jurisdiction's income tax is a fixed percentage of federal withholding, enter the applicable percentage in this field.
If the jurisdiction calculates income tax as a percentage of federal withholding that varies by employee, you must enter the appropriate percentage for each employee on the Local Withholding Item Properties dialog (which is accessible from the Employees window).
Percent of state W/H and State
If the jurisdiction's income tax is a fixed percentage of state withholding, enter the applicable percentage in this field and also choose the state from the drop-down list.
If the jurisdiction calculates income tax as a percentage of state withholding that varies by employee, you must enter the appropriate percentage for each employee on the Local Withholding Item Properties dialog (which is accessible from the Employees window).
Reciprocal credit percent (Ohio only)
If the selected Ohio city tax allows for a credit for other city taxes paid, enter the percentage of allowed credit in this field.
Fixed amount
If the jurisdiction's income tax is a fixed amount, enter that amount in this field.
Use the fields in this section if the selected jurisdiction applies a flat marginal tax rate to wages based on the number of exemptions claimed. The thresholds are the wage amounts above which additional tax is calculated.
Obtain the threshold dollar amounts and the tax rates for wages over the threshold amounts from the jurisdiction's current tax manual.
If there are limits for the selected jurisdiction's income tax, enter them as follows.
- Monthly earnings threshold
Enter the monthly threshold earnings amount (if any) to use when calculating the selected jurisdiction's income tax. The program will begin calculating the income tax only after the employee's taxable wages for the month have reached this threshold amount.
- Monthly maximum amount
Enter the maximum amount (if any) to use when calculating the selected jurisdiction's income tax. The program will cease calculation of this tax if and when it reaches this specified amount at any time during the month.
- Annual wage limit
Enter the annual wage limit (if any) to use when calculating the selected jurisdictions income tax during the current year.
Mark this checkbox to have the program automatically use whole dollar rounding when calculating local withholdings for the currently selected locality. If you choose whole-dollar rounding, pennies of 49 cents or less will round down, and pennies of 50 cents or greater will round up during check entry.
Note: To use whole-dollar rounding for all localities, choose File > Client Properties, click the Calculating Payroll tab, and mark the Local W/H checkbox for Whole-dollar rounding. The checkbox in the Client Properties dialog overrides the checkbox in the Local Tax Information dialog.
This button opens the Employer Expense dialog, where you can indicate how the selected jurisdiction calculates employer expense amounts, if applicable.
This checkbox should be marked only for the NYC - Nonresident locality or the Yonkers - Nonresident locality, which are both already defined in the program.
To designate this local tax as the New York Metropolitan Commuter Transportation Mobility Tax (MCTMT, for NY Form MTA-305), mark this checkbox.
While the NY MCTMT is subject to a $2,500 quarterly threshold for the employer's payroll taxes, the program does not use that wage limit when calculating the tax - rather, the tax is calculated for all employee payroll checks that include this local withholding item.
For a Pennsylvania locality, to comply with the requirements of Pennsylvania Act 32, enter the appropriate PA PSD code. For more details, see Pennsylvania Act 32 changes.
CREATIVE SOLUTIONS ACCOUNTING
