Understanding Tax Area Information

You verify that tax area information is set up for any tax that the company or employees have paid over the year. If tax area information is not accurate, information on year-end forms might not be reported correctly. Before you build the workfile, verify that the statutory codes and descriptions for the state and local tax areas are accurate. The system prints this information in two boxes on the W-2:

• Box 15

  This box displays the statutory code that is assigned to the state tax area. These codes are in UDC 06/SC.

• Box 20

  This box displays the local tax area description. Eight characters appear for standard and two-part laser forms. Fifteen characters appear for four-part laser forms.

  Note:

  For Indiana employees who work in a taxable county but live in a nontaxable county, Box 20 displays the first four characters of the local tax area description on form W-2. For a complete country code listing, see the Indiana Department of Revenue for a complete county code listing.

  When you run the workfile build program, the system derives the work tax area from the Employee Master Information table (F060116).

  For the Pennsylvanian employees, Box 20 on the W-2 and W-2C forms includes the first two digits of the PSD code representing the tax collection district where the tax was remitted, along with the school district code and tax area information. For Philadelphia PSD, Box 20 will display the local tax area description.

See also:

• "Setting Up Tax Area Information" in the JD Edwards EnterpriseOne Applications Human Capital Management Fundamentals Implementation Guide