Understanding Tax Area Information Setup

Before using the JD Edwards EnterpriseOne Payroll system to process a payroll, you must set up tax area information. You set up tax areas for the locations where employees live and work, and for the taxes that need to be withheld.

If you use Quantum for Payroll Tax and the GeoCoder software from Vertex, Inc., you do not need to use the Tax Area Information program. When you set up tax area codes with the GeoCoder, the system automatically adds all required codes to the Payroll Tax Area Profile table (F069016).

If you are using the JD Edwards EnterpriseOne Payroll system without Quantum for Payroll Tax, you use the Tax Area Information program (P069012) to set up tax areas to:

• Provide essential key information that the system uses for payroll history tracking.

• Store tax information.

• Store statutory code information that the system can print on forms, such as paychecks and payroll advice forms.

To control whether the system requires tax area information when you enter employee records, you can set a processing option for the Employee Master program (P0801) and the Employee Quick Hire program (P060116Q).

If you use Quantum for Payroll Tax, the Quantum software performs the calculations, based on the information that you set up. Quantum for Payroll Tax calculates the employee-paid amounts even if you do not set up the tax area information.

After you set up tax area information, you need to update the F069016 table. If you are using Quantum for Payroll Tax, run the Update Tax Area Table program (R07500) after you set up the GeoCoder.