Employee Tax Information

School District Code

Enter the code in UDC 06/SD that determines the school district tax for taxation purposes. Vertex automatically calculates the school district tax. This feature is primarily used by the public sector.

Residency Status

Enter the value that identifies out-of-state employees for whom an employer must withhold tax for the state of residence. Values are:

N (default): Uses the employee residence state to calculate taxes. Because the work state has a reciprocal agreement with the employee state of residence, the system uses the employee residence state from the F060116 table.

W: Uses only the work state to calculate taxes.

Source of SUI/SDI Reporting (source of state unemployment insurance/state disability insurance reporting)

Enter the work tax area that is used for SUI reporting. You can specify that the system use either the resident state or the work state, regardless of where the employee worked. FUI is calculated in the same state where SUI is calculated. Weeks worked are the number of weeks that the employee worked in the taxed state. Values are:

N: Use the work tax area in the time entry record to determine SUI. This is the default value.

R: Always use residence tax area from the F060116 table, even if the time entry record is different.

W: Always use work tax area from the F060116 table, even if the time entry record is different.

Tax Method

Enter a code that specifies the tax method that the Vertex payroll-tax calculation system uses to calculate certain taxes. The codes are defined in UDC 07/TM.

This code can also determine the form that the employee receives for year-end tax reporting. For example, when you enter C, a contract employee receives IRS Form 1099-M rather than IRS Form W-2. If a form is not specified in the Description 2field, the system generates IRS Form W-2.

For employees who are paid multiple times within one pay period, the system should review previous payments within the same pay period and then adjust tax amounts. To specify this function, enter S.

If a tax method exists for an employee in addition to the normal tax method that is set up in the F060116 table, the system can use the alternative tax method to interactively process interim payments. To specify this function, enter Z.

Some values, such as S and Z, might require additional setup in the UDC table.

See also:

• "Reviewing and Revising Employee Information" in the JD Edwards EnterpriseOne Applications Human Capital Management Fundamentals Implementation Guide.

• "Entering Employee Instructions" in the JD Edwards EnterpriseOne Applications Human Capital Management Fundamentals Implementation Guide.

• "Entering Timecards for Employees" in the JD Edwards EnterpriseOne Applications Time and Labor Implementation Guide.