Understanding State Payroll Tax Reporting

The State Payroll Tax report provides detailed information about the earnings, benefits, deductions, and expenses that are identified as payroll taxable or payroll tax exempt. Details are also provided for termination payments that are payroll tax exempt

Note: The State Payroll Tax report is not a complete representation of payroll tax liabilities. Other payments and earnings that are administered outside the PeopleSoft system should be included in any returns submitted to the State Revenue Office. This may include details of companies that form part of a group but are administered outside the PeopleSoft system.

If an employee moves to a different state during a reporting period, the system uses the Job record that is valid at the time of payment of state payroll tax. For example, suppose that a weekly employee has four pay periods in the month, and the employee moves to another state during the fourth pay period. That fourth pay period is reported for the new payroll tax state.