1. Human Capital Management Fundamentals Implementation Guide
  2. Entering Additional Tax Override Information

Entering Additional Tax Override Information

Access the Additional Tax Overrides form.

After you have entered tax exemptions and overrides for an employee, you can access the Additional Tax Overrides form to enter employee-level overrides to Quantum settings.

Tax Area

Enter the Tax Area for which you wish to enter the override.

Tax Type

Enter the Tax Type for which you wish to enter the override.

Override Tax Type

Enter a value to specify whether the value in the JIT Value, NR Certificate, or Arizona Voluntary field applies to the employee's resident or work state. For example, if you enter a record to override the JIT Value for the work state, enter W in this field.

If you enter a value in this field, you must also enter a value in at least one of these fields:

  • JIT Value

  • NR Certificate

  • Arizona Voluntary

  • Indiana County WH

  • Chi Head Tax Month 1

  • Chi Head Tax Month 2

  • Chi Head Tax Month 3

  • Rhode Island SUI Tier 2

  • Puerto Rico Exemption

  • Puerto Rico Joint Custody

  • Puerto Rico veteran

  • Puerto Rico Special Allowance

  • Military Spouse Exempt

Note that you cannot enter a value in both the NR Certificate field and the Arizona Voluntary field in the same record. Values are:

R: Non-resident certificate (residence)

W: Non-resident certificate (work)

Begin Date

Enter the date the override begins.

End Date

Enter the date the override ends.

JIT Value (Jurisdictional Interaction Treatment Value)

Enter the JIT group that is associated with the tax calculation method that you want to use for the employee's pay scenario. The system uses this value to calculate the employee's taxable gross and tax amount for the resident and work states.

The JIT value applies to state, city and county withholding. It does not apply to SUI or SDI.

For assistance determining which value to enter for an employee, refer to the Quantum Tax Calculation Guide for State/Local Reciprocity, or contact your local taxing authority. Values are:

Resident Only:

2: Credit the resident tax by the amount of work tax withheld. Always accumulate wages.

3: Credit the resident tax by the amount of work tax withheld. Accumulate wages only if tax is withheld.

4: Eliminate the resident tax if the work tax is greater than zero. Always accumulate wages.

5: Eliminate the resident tax if the work tax is greater than zero. Accumulate wages only if tax is withheld.

6: Eliminate the resident tax if the work tax imposes a withholding tax on nonresidents. Always accumulate wages.

7: Eliminate the resident tax if the work tax imposes a withholding tax on nonresidents. Accumulate wages only if tax is withheld.

8: Calculate work taxes only.

Resident or Work:

-1: Bypass JIT tax calculation.

0: Setting NR Certificate to FALSE. (For use with Vertex V.280 only)

1: Setting NR Certificate to TRUE. (For use with Vertex V.280 only)

99: Independent calculation. Calculate tax ignoring all state reciprocity rules.

NR Certificate (Non Resident Certificate)

Specify whether the employee has a non-resident certificate on file. If you enter a value in this field:

  • You cannot enter a value in the Arizona Voluntary field.

  • You must enter a value in the Override Tax Type field.

Values are:

Blank or 0: The employee has not filed a certificate.

1: The employee has filed a certificate.

Arizona Voluntary (Non Resident Certificate)

Specify whether the employee has an Arizona Voluntary certificate on file. If you enter a value in this field:

  • You cannot enter a value in the NR Certificate field.

  • You must enter a value in the Override Tax Type field.

Values are:

Blank or 0: The employee has not filed a certificate.

1: The employee has filed a certificate.

Indiana County Withholding

Use this field to specify whether the employee has filed the Indiana County WH-4 form. The State of Indiana imposes a withholding tax based on where an employee lived and worked beginning January 1 of the current pay year.

Values are:

T: True (the employee has filed a form)

F: False (the employee has not filed a form)

Chicago Head Tax - Months 1 to 3

Use the Chicago Head Tax fields to specify whether the Chicago Employers' Expense tax is applicable.

The Chicago Employers' Expense Tax is imposed on employers doing business in Chicago who have 50 or more full time employees who earn at least $900.00 in a calendar quarter. The tax is assessed on a monthly basis and is due to the Chicago Department of Revenue on a quarterly schedule.

You use these three fields to specify whether the employees worked 50% or more of their hours in Chicago, and whether the employer had 50 or more full-time employees during the specified month of the quarter.

Values are:

T: True. The tax is applicable for this month.

F: False. The tax is not applicable for this month.

Rhode Island SUI Tier 2

Use this field to indicate whether the employee qualifies for second tier wages with a base of $21,100 for Rhode Island State Unemployment Insurance -Employer Paid- (tax type H) and Job Development Fund Tax (tax type H1).

Values are:

T: True. The employee qualifies for second tier wages and the tax is applicable.

F: False. The employee does not qualify for second tier wages and the tax is not applicable.

Puerto Rico Exemption

Use this field to specify whether the employee's annual gross wages are $20,000 or less, and whether the employee has filed the 499-R form to opt out of the state withholding tax for unemployment insurance.

Values are:

1: True. The employee claims the exemption.

0: False. The employee does not claim the exemption.

Puerto Rico Joint Custody

Use this field to indicate whether the employee is claiming complete or joint custody for dependents. Enter the number of dependents (exemptions) in the Employee Tax Override application (P060120).

Values are:

1: True. The employee claims joint custody of dependants.

0: False. The employee does not claim joint custody of dependants.

Puerto Rico Veteran

Use this field to indicate whether the employee is a veteran of the Armed Forces of the United States and claims himself as an additional exemption.

Values are:

1: True. The employee claims the exemption.

0: False. The employee does not claim the exemption.

Puerto Rico Special Allowance

Use this field to indicate whether the employee takes a special allowance that decreases as the employee's annualized wages increase. The employee can claim this allowance for regular wages but not for supplemental wages.

Values are:

1: True. The employee claims the special allowance.

0: False. The employee does not claim the special allowance.

Military Spouse Exempt

Use this field to indicate whether the employee claims the military spouse exemption that applies to all state withholding taxes and some local withholding taxes.

The criteria for determining eligibility are:

  • The claimant' s spouse is an actively serving member of the United States Armed Forces.

  • The claimant' s spouse is assigned to the temporary duty location by order of the Armed Forces.

  • The claimant' s temporary residence is in the same state as the temporary duty location.

  • The claimant declares his permanent residence to be a state other than the temporary duty location.

Values are:

1: True. The employee claims the exemption.

0: False. The employee does not claim the exemption.