Setting Up Default Special Tax Withholding Status and Override Reasons

Default Special Withholding Tax Status

GPUS_SPWH_STAT

To set the value of the Special Tax Withholding Status based on the current State rules, regarding taxability of earnings, at the employee level.

Effective Date

Select the date on which the special tax withholding status is applicable for each state.

State

Select the required state for which the default special tax withholding status to be set.

Special Tax Withholding Status

Select the required special tax withhodling status from the drop-down list.

Available options are:

• None: Select if the payee has no special tax status. With this option, the system calculates SWT based on the payee's taxable gross, marital status, and withholding allowances. If you select this option and specify an additional amount or percentage, the system calculates taxes based on the information in the tax table and withholds the additional withholding amount indicated.

• No taxable gross; no tax taken: Select to disable the tracking of state taxable gross balance for the payee.

• Maintain taxable gross; no SWT. Select to override the normal tax calculation with the additional amount or percentage indicated. The system determines taxable gross for SWT using the individual earnings paid to the payee. The tax withheld becomes either a flat amount or a percentage of the state taxable wages.

The value selected in this field is set as the default value for special tax withholding status in the Maintain Tax Data USA page. This value can be modified at the employee level within the Maintain Tax Data page. For details on overriding default tax status, see Maintaining Payee Tax Information.

Reason Code

Displays the code for tax status override.

Effective Date

Select the date on which the reason becomes effective.

Description

Enter a meaningful description for the override reason.

Short Description

Enter a short description for the override reason.

Comments

Enter additional remarks, if any.