Overriding the JIT Value

Based on the value in the Jurisdiction Interaction Treatments processing option of the Payroll Workbench (P07210) and Interim Workbench (P07210I) programs, the system uses Jurisdictional Interaction Treatment (JIT) in this way:

• If the value in the processing option is blank and a formal reciprocal agreement exists, the system assumes that the Nonresident Certificate has not been filed and calculates the work tax. The system passes the blank value of JIT into the Vertex tax engine for both work and resident states.

• If the value in the processing option is 1, the system does not calculate work tax for nonresident employees working in a state with a formal reciprocation agreement with their state of residence. The system passes the value of JIT as 1 into the Vertex tax engine for both work and resident states.

By default, the system automatically calculates state taxes based on the JIT group to which the state belongs. For example, at the time of publication, Vermont belongs to JIT group 2. Therefore, if no overrides exist, the Quantum system uses the method associated with JIT group 2 to calculate employee state taxes for Vermont.

However, you might want to change the method that the system uses to calculate taxes for a certain employee and state. To change the calculation method, you enter an additional tax override for the employee. The override includes the state for which the override is applicable, the dates during which the override is valid, and the override JIT group.

For example, you might want Vermont taxes that are associated with a specific employee to calculate using the method for JIT group 3. Using this method, the system credits the resident tax by the amount of work tax withheld, and accumulates resident wages only if resident tax is withheld. To use this method, you must enter an override for the employee.

This table illustrates an example of the data that you might enter for this override:

Field	Value
Tax Area	46
Tax Type	F
Override Tax Type	R
Begin Date	01/01/09
End Date	12/31/09
JIT Value	3

The default JIT Value for Vermont is 2. However, in this example it has been overridden with a value of 3. Therefore, the employee's state taxes are calculated using the JIT group 3 method.

If you process a payment for this employee that includes 2000 USD in gross pay, the records in the Tax Detail table (F07353) would include this information:

Tax Area	Tax Type	Gross Pay	Taxable Gross	Tax	Excludable
46	F	2000.00 USD	0	0	2000.00 USD
22	F	2000.00 USD	2000.00	97.89	0