Setting Up Tax Area Information
Access the Tax Area Revisions form.
- Tax Area
Enter a code that identifies a geographical location and the tax authorities for an employee work site, including employee and employer statutory requirements. In the Vertex payroll tax calculation software, the tax area code is synonymous with GeoCode. To determine the values for your location, refer to the documentation for the tax calculation software that you are using.
- Tax Type
Enter a code from UDC 07/TX that specifies the type of payroll tax being processed. To set up state minimum wage amounts, you must enter MW in this field. To do so, you must first add MW to UDC 07/TX. However, you should not change the codes and definitions that are provided with the software.
- Description 1
Enter a description for the tax area. Enter text in upper and lower case.
- Statutory Code
Enter a code from UDC 07/SC that specifies the two-character or three-character state or province code that prints on statutory reports such as W-2s and T4s.
For example, on W-2s and T4s, instead of printing 06 which might be the code for the taxing authority for the state of Colorado, the system prints the statutory code CO.
- Co/Empl Paid (company/employee paid)
Enter a code that specifies whether the payroll tax associated with the tax authority is paid by the company, as an expense, or by the employee, as a deduction (withholding). Values are:
C: Company Paid
E: Employee withheld
- Method of Printing
Enter a code that identifies whether the PDBA is to be printed on the pay stub or whether it is to be printed on a payment that is separate from other PDBAs.
Values for pay types and payroll taxes include:
Y: Print on pay stub (default).
S: Print separate payment (one item per payment).
C: Print separate payment (C types combined).
N: Do not print on pay stub.
Values for DBAs include:
Y: Print as total deductions (default).
S: Print separate payment (one item per payment).
C: Print separate payment (include detail).
N: Do not print on pay stub.
I: Print individual DBA codes.
T: Print by DBA print group.
The separate payment feature is not available for any payroll taxes being withheld from the employee's payment.
- A/P Voucher (Y,N)
Enter a code to determine whether the system should generate a voucher for the tax during the final update phase of the payroll processing cycle. Values are:
N: No.
Y: Yes.
Complete this field if you are integrating Payroll with Accounts Payable and you need to generate vouchers for this tax.
- Provider/Trustee
Enter the address book number for the supplier who receives the final payment.
In JD Edwards EnterpriseOne Benefits Administration, this is the address book number of the company that issues the plan and receives premium payments for it.
- Occ Tax W/H Freq (occupational tax withholding frequency)
Enter a code that designates whether the occupational head tax is to be withheld monthly (M), quarterly (Q), or annually (A).
- Arrearage Rules (future use)
Enter a code to indicate the method the system uses to back off payroll taxes when the employee is in a negative pay situation. Values are:
P: The tax can be reduced as much as needed, either partially (to the stated limit) or in full.
N: The tax can not be reduced.
Q: The tax can be reduced as much as needed, and the amount is placed in arrears.
When you leave this field blank, the system uses the default value of P.
- Taxes Priority (future use)
Enter a code that specifies the order in which the system should back out (reverse) the deduction of the payroll taxes when an employee's gross pay does not cover payroll taxes.
Values are 0001 through 9999. The system starts with the highest code.
For example, the system backs out 9999 before 0001.
- Tax Adjustment Limitation
Enter the maximum amount of payroll tax that the system backs out of net pay to meet the minimum check requirements.
Note: If you are setting up tax area information to record state minimum wage rates, enter the minimum wage rate in this field.