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Configuring State and Local Deductions and Liabilities

This article is the process overview for state and local Deduction/Liability setup. Field-level detail for creating codes lives on PR Deductions and Liabilities. Authority masters live on PR State Information and PR Local Codes. Use this page to sequence the work and catch cross-form exceptions.

Before you start​

  • HQ States (and locals you will code) exist.
  • You know which Calculation Category each code needs (State, Local, Insurance, Employee, Any).

Process​

1. Create Deduction/Liability codes​

  1. In PR Deductions and Liabilities, create each code:
    • Deduction vs Liability (liabilities need Liability Type for GL).
    • Calculation Category State or Local (or Insurance / Employee / Any when appropriate).
    • Method and Rate/Amount #1 (primary/resident) and #2 (secondary/nonresident when needed). Enter decimal rates (example .05 = 5%).
    • Aatrix Tax Type when the code reports as state/local tax or unemployment. Locals without a specific type often use 2000 for W-2 AUF.
    • Include on W-2s as Local Tax only for Employee/Any categories, and not when the code is assigned to a specific PR Local Codes locality.
  2. Save codes before registering them on state/local masters.

2. Register on PR State Information​

  1. For every employee-work state, open PR State Information.
  2. Set Tax Dedn and SUTA Liability.
  3. On Add'l State Based Dedns/Liabs, add DL Codes with Based On T (income-tax-subject) or U (unemployment-subject).

3. Register on PR Local Codes​

  1. For each city/county/district, open PR Local Codes.
  2. Set Tax Deduction, Calculation Option, Tax Type, and Taxing Entity.
  3. Add Add'l Local Based Dedns/Liabs. The main Calculation Option on the local header does not automatically drive those additional rows.

4. Exceptions​

  1. Ohio School District tax: do not use PR Local Codes. Use the Tax and Worker's Comp Routines table instead.
  2. Verify on a test employee (and job-posted local when used) before the first live multi-jurisdiction pay run.

Notes​