Configuring State and Local Deductions and Liabilities

Configuring state and local deductions and liabilities is essential for ensuring compliance with regional tax laws and accurate payroll processing. This setup allows for automatic calculation of deductions and liabilities based on the employee's work location.

Before you start

• Knowledge of state and local tax requirements.

Steps

1. Open thePR State Informationform to list available states for timecard records.
2. Link each state to its corresponding tax deduction and unemployment liability codes.
3. Add additional state-based deduction or liability codes on the Additional State Based Deduction Liability tab as needed.
4. Use thePR Local Codesform to set up local payroll taxes, linking them to deduction codes for automatic calculation.

Notes

• Ensure all states and local codes are correctly linked to avoid payroll errors.
• Regularly update configurations to reflect changes in tax laws.