Configuring PR Local Codes

The PR Local Codes form is used to set up payroll taxes related to counties, cities, or school districts. By configuring local codes, businesses can automate the calculation of local taxes on employee timecards, deductions and liabilities are accurately recorded and reported.

Before you start

• Knowledge of local tax requirements and applicable tax IDs.

Steps

1. Open thePR Local Codesform.
2. Enter a description for the local code to identify the specific county, city, or school district.
3. Reference the appropriate tax ID for the local code.
4. Specify the state with which the local code is associated.
5. Link the local code to a deduction code if a deduction needs to calculate when this local code is present.
6. Choose the calculation options and tax types for W-2 reporting.
7. Use the additional local-based deduction liability tab to list other deduction and liability codes that should calculate when this local code is present on a timecard.

Notes

• The correct state is associated with each local code to avoid incorrect tax calculations.
• Double-check the deduction codes linked to local codes so they align with local tax regulations.