Setting Up a Local Tax

Overview

Before you start

To set up a local tax for your company

1. Open Payroll > Payroll Setup > Local and Other Custom Taxes.
2. Click the Select Local Tax button. All taxes in your system display.
3. Highlight the local tax to add to your company and click Select.
4. Verify the information for the tax and on the G/L Dist tab, add a G/L Distribution Code.
5. Click Add.
6. Click Save.

Install the Tax Repository and Update Tax for All Employees

The Install Repository button restores the latest available compliance data in your system. The repository contains the compliance data for local taxes. Selecting this option will not affect current company tax codes you have in your system, unless you choose to update your local tax codes. You can reinstall the repository multiple times.

To update a company tax code with data from the repository, you can do one of the following:

• Update local tax codes individually.

  Select the tax code in the tax finder and then click the Update button. The Update button is not enabled for custom taxes that you create.

• Update all local tax codes automatically.
  •  After installing the repository, when prompted "Do you want to continue updating the company local tax records with information from the local tax repository?", click Yes. The company-level local taxes are then updated.
  • You are then prompted to update the employee-level local taxes. When prompted "Do you want to continue updating employee local tax records from the local tax repository?" click Yes .

After setting up a tax

• Print a listing of taxes you set up, to verify that they are correct and complete:
  • On the File menu of the window, choose Print, or
  • From the Payroll Setup Reports folder, choose Tax Profiles.
• Print the company-level and employee-level Update Local Taxes Audit reports and verify the changes.