Tax Withholding Card

The Tax Withholding card is the default employee federal tax card for the US. The info this card captures is used for populating federal forms, such as the W-4, and regional cards, such as the Pennsylvania Residency Certificate.

This card provides important info the payroll process needs to calculate taxes.

Filing status
Number of allowances
Exemptions from taxes

This info is based on the employee's selections on their Form W-4.

Note: You can use this card to manage employee federal and W-4 tax info if you have an HR Only implementation. For further info, see Tax Withholding Card for HR Only Implementations on the Help Center.

There are multiple actions you can perform on this card.

What you want to do	How you do it
View the tax card	As the employer, use the Calculation Cards task. Employees can view it from their Me page.
Create and update the card	Use the Calculation Cards task. For employees hired prior to 2020, the default federal settings for the card are Single 0. For the 2020 and onward, the default is Single or Married filing separately.
Calculate an employee's work state	If you have enabled sync actions, the card determines this automatically. For further info, see Sync Calculation Cards below. Employees working in multiple states may require special tax card configuration.
Perform additional tax card configuration	You can perform configuration for the following. Regional taxes Withholding overrides Wage accumulation Applying multiple state rules and rates

For further info, see the following sections.

View the Card

The tax card captures multiple levels of employee tax info.

What you want to see	What this includes	How you do it
Employee Form W-4	When an employee accesses their federal tax card info, it displays the info used on their W-4. For those states that follow federal, the filing status defaults to Single 0 if no update was made to that state component. For those states that don't follow federal, the specific state's editable info displays. The employee can perform their updates on these forms for both federal and state withholding.	As the employer, here's how you can view an employee's Tax Withholding card. From My Client Groups, click Payroll. Click Calculation Cards. Search for and select the person. Open their Tax Withholding card for editing. In Withholding Details, select Federal. The PDF file generates, and you can print it as needed. For each state row, click the link to view the State Employee W-4 PDF. If you have granted access to the Tax Withholding task for the employees' roles, here's how they can view their W-4 forms. From their Me page, click Pay. Click Tax Withholding.
Pennsylvania Residency Certificate	The Pennsylvania Residency Certificate form is available from the Me page. This feature enables employees to view and update their own info. The form defaults the employee and employer info such as name, address, social security number, and federal employer identification number (EIN).	As the employer, to view a person's Pennsylvania Residency Certificate, select PA under Withholding Details to view the PDF. How the employee can view their certificate: From their Me page, click Pay. Click Tax Withholding. Click Tax Withholding. Click PA.
Withholding details	You can filter regional components using Withholding Status to limit which records you view. Typically, you view only active components, but you can also view inactive or all components.	Here's how you filter regional components: Open the person' tax card. Under Withholding Details, select a withholding status, such as Active.

What you want to see

What this includes

How you do it

Employee Form W-4

When an employee accesses their federal tax card info, it displays the info used on their W-4.

For those states that follow federal, the filing status defaults to Single 0 if no update was made to that state component.
For those states that don't follow federal, the specific state's editable info displays.

The employee can perform their updates on these forms for both federal and state withholding.

As the employer, here's how you can view an employee's Tax Withholding card.

From My Client Groups, click Payroll.
Click Calculation Cards.
Search for and select the person.
Open their Tax Withholding card for editing.
In Withholding Details, select Federal.

The PDF file generates, and you can print it as needed.
For each state row, click the link to view the State Employee W-4 PDF.

If you have granted access to the Tax Withholding task for the employees' roles, here's how they can view their W-4 forms.

From their Me page, click Pay.
Click Tax Withholding.

Pennsylvania Residency Certificate

The Pennsylvania Residency Certificate form is available from the Me page. This feature enables employees to view and update their own info. The form defaults the employee and employer info such as name, address, social security number, and federal employer identification number (EIN).

As the employer, to view a person's Pennsylvania Residency Certificate, select PA under Withholding Details to view the PDF.

How the employee can view their certificate:

From their Me page, click Pay.
Click Tax Withholding.
Click Tax Withholding.
Click PA.

Withholding details

You can filter regional components using Withholding Status to limit which records you view. Typically, you view only active components, but you can also view inactive or all components.

Here's how you filter regional components:

Open the person' tax card.
Under Withholding Details, select a withholding status, such as Active.

How to Create and Update the Card

You have multiple options related to creating and updating this card.

What you want to do	How you do it
Create the card automatically	For most employees, the New Hire process automatically creates the Tax Withholding card. However, there are cases where you must create it manually using the Calculation Cards task. For further info, see Create the Card Automatically below.
Update the card automatically	Your employees' HR and payroll data is interconnected, and changes in one area can impact others. To maintain data integrity, when you make certain changes to person's data, a sync process automatically updates the appropriate tax card info. This sync process is enabled by default. Use the Payroll Process Configuration task to disable it. For further info, see Update the Card Automatically below
Create and update the card manually	Use the Calculation Cards task. From here, you can create and edit cards.
Add default state and local withholding	Use the Calculation Cards task, and click Create Default State and Local Withholding.
View a person's exemption history	Use the Calculation Cards task, and click View History.

For further info, see the following sections.

Create the Card Automatically

You use the Manage Features by Country or Territory task to activate localization-specific functionality for your enterprise.

When you select Payroll or Payroll Interface for the United States localization, your workers automatically receive a Tax Withholding card whenever you:

Define them through the New Hire task.
Assign them a new payroll relationship.
Convert their employee data through batch loaders.

By default, the new card declares a Single or Married filing separately filing status.

Here's how to set up automatic Tax Withholding card creation.

Use the Manage Features by Country or Territory task to set the Selected Extension parameter to either Payroll or Payroll Interface, as appropriate for your implementation.
Confirm you have created element eligibility for the US Taxation element. This element is automatically added to the employee's element entry when you associate the card to the tax reporting unit (TRU).

Update the Card Automatically

Depending on the actions you perform, different parts of the card are affected.

When you do this	This occurs
Hire an employee or create a payroll relationship	Creates the card Associates it to the TRU you chose during the hire process
Change an employee's work location	Sets the following. State for unemployment calculation State for disability calculation Primary work location
For work-at-home employees, change their home state address, including their resident tax address	Updates the following. State for unemployment (SUI) and disability insurance (SDI) Primary work address Note: This doesn't apply to Pennsylvania PSD codes. For further info, see Pennsylvania Local Earned Income Tax in the Help Center.
Change their work-at-home status	Updates the following. Primary work location
Rehire an employee	If you hire the employee into the same TRU as before, reuses the existing tax card If you hire the employee into a different TRU, doesn't create an association
Add a secondary assignment	If the secondary assignment is in the same TRU as the primary assignment, uses the same tax card. Otherwise, you must create a card for it.

Note: When you change a location's address, the Sync Calculation Card process doesn't apply that change to any employee records. You must manually make the applicable updates to the records of employees assigned to that location.

Here's how to disable automatic updates of the Tax Withholding card.

Search for and start the Payroll Process Configuration task from your implementation project.
Select the Default group, and set the Create DIR Card value to HRSYNCDISABLE.

How to Create and Update the Card Manually

In cases where you must manually create or update the tax card, use the Calculation Cards task.

For example, in these situations you must manually create a card.

If you disabled the automatic card creation feature
If you loaded employee records through HCM Data Loader (HDL)

For further info, see Create a Personal Calculation Card for the US in the Help Center.

When the card doesn't inherit location changes, you must also use the Calculation Cards task to manually update it.

Here are some examples of when you must manually update the location.

If you want to do this	Here's how you do it
Link multiple assignments to a payroll relationship	The card doesn't update: The state used for unemployment and disability calculations The person's primary work address The card doesn't update these values because it can't identify which location record to use. In this case, you must manually update the card with the correct primary work address, SUI, and SDI.
Include employee assignments from different PSUs	Each assignment would have a separate Tax Withholding card.
Include employee assignments from the same PSU	If the assignments are in the same PSU, create the appropriate TRU associations.
Include states that levy school district income taxes	You must manually populate the school district on the Tax Withholding card. Depending on the state, you enter the school district under either the City or County node. For example, you enter Kentucky school districts under County. Enter Ohio school districts under City. For resident addresses in a township, you must populate Tax District on the address first. Then, you can populate the proper school district on the tax card.

For further info, see Examples of Updating the Tax Withholding Card After a Location Change in the Help Center.

Default State and Local Withholding Info

When the card is created, either manually or automatically, it has no default state and local components. If your employee requests special state or local withholding, you must specifically create their components. To do this, click Create Default State and Local Withholding. This adds regional components based on the person's work and resident addresses.

Note: If you don't add state and local components to the tax card, the payroll process uses the state's default settings.

For further info, see the following in the Help Center.

Configure the Tax Withholding Card
State Tax Withholding Rules

Sync Calculation Cards Process

If you have disabled the automatic sync process, you can use the Sync Calculation Cards process to sync all employee HR data to their Tax Withholding cards. Use the Default Primary Address and State of Disability and Unemployment mode.

Note: When you run this process manually, it updates only your latest changes. It doesn't update historical data.

For further info, see Sync Calculation Cards for the US in the Help Center.

View Exemption History

The card keeps a record of the person's withholding and allowances elections over time. To review them across a range of dates:

In Withholding Details, select the federal or regional node you want to view.
Select Edit, and then click View History.

Calculate the Employee Work State

Here's some things to consider for the employee's work state.

Default work state calculation
Multiple work state configuration

Default Work State Calculation

When you manually assign an employee a card using the Create Default State and Local Withholding process, that card is associated with the employee's default work state.

The payroll process uses the default work state for calculating SUI and SDI.

Associating the SUI and SDI state with where the employee works occurs automatically, unless you have disabled the sync process. If that's the case, run the Sync Calculation Cards process. This process syncs the employee data with the tax card.

For further info, see the following in the Help Center.

How the Payroll Process Determines the Employee Work State
Sync Calculation Cards for the US

Multiple Work State Configuration

Employees working in multiple states require special Tax Withholding card configurations. If the employees' assignments are in different payroll statutory units (PSU), they would have separate tax cards for each.

If the additional assignments are in the same PSU, you must add the appropriate location-based nodes to the default card. The nodes represent the state, county, and city.

Here's how you can edit the Tax Withholding card.

From My Client Groups, click Payroll.
Click Calculation Cards.
Search for and select the employee.
Select their Tax Withholding card for editing.
Create the appropriate tax reporting unit (TRU) associations.

Note: Some payroll actions automatically establish TRU associations.This includes actions like adding assignments, hiring, and employee transfers.

Additional Configuration

Once you have created the tax card, it may require some additional configuration.

Regional tax info
Withholding overrides
Wage accumulation
Tax reporting unit associations

Regional Tax Info

The Regional section of the card provides multiple sections that include fields applicable to various states and territories. They are necessary for accurate tax withholding calculation.

State or territory	Section of the card	Field	How you use it
All	State Tax Information	Exemption for Military Spouse	Identifies the employee as eligible for military spouse tax exemption. This field is for informational purposes only. As the employer, you're responsible for applying the tax exemptions. For further info, see Wage Accumulation below.
All	State Tax Additional Information	Nonresident	Indicates if the employee is a nonresident of that state or territory. Note: Some states store this field in the State Tax Information section.
All	State Tax Additional Information	Voluntary Income Tax Withholding	Identifies if tax withholding for the state or territory is voluntary. This field is informational only.
All	State Tax Additional Information	Resident Wage Accumulation	For use in determining courtesy withholding rules. For further info, see Oracle Cloud Human Capital Management for the United States: Courtesy Tax Implementation (2138998.1) on My Oracle Support.
All	State Tax Additional Information	Exemption Amount	Claims an amount exempt from tax for that state or territory. Note: Some states store this field in the State Tax Information section.
AR, AZ, NJ	State Tax Additional Information	Optional Calculation Method	Designates which table to use for the calculation of the state tax. For further info, see the Vertex Payroll Tax Calculation Guide for the United States.
PR	State Tax Additional Information	Secondary Allowance	Claims secondary allowances for Puerto Rico.

Use the HDL to update these values for multiple employees.

Withholding Overrides

Each federal or state component on the card has one or more Withholding Overrides regions in Withholding Details.

Here are the overrides you can set for these components.

Regular Amount
Regular Rate
Supplemental Amount
Supplemental Rate

If you enter values for both Regular Amount and Regular Rate, the regular amount takes priority over the regular rate.

Wage Accumulation

On the Tax Withholding card, each federal income tax (FIT) and SIT component has a Withholding Exemption section. To exempt an employee from tax withholding or wage accumulation, mark one of the following as Yes.

Field name	What it does
Exempt from (component) Income Tax	Excludes this tax from withholding.
Exempt from Wage Accumulation	Excludes this tax from withholding, and doesn't accumulate wages for the component. For purposes of exempting an employee from state income tax (SIT) due to a military spouse situation, mark this as Yes for the state component if: You don't want to withhold SIT. You don't want to accumulate wages.

Field name

What it does

Exempt from (component) Income Tax

Excludes this tax from withholding.

Exempt from Wage Accumulation

Excludes this tax from withholding, and doesn't accumulate wages for the component.

For purposes of exempting an employee from state income tax (SIT) due to a military spouse situation, mark this as Yes for the state component if:

You don't want to withhold SIT.
You don't want to accumulate wages.

For FIT, if you mark both as exempt, the payroll process ignores Exempt from Wage Accumulation.

For SIT, if you mark both as exempt, the process honors both.

Tax Reporting Unit Associations

Associating a TRU with a Tax Withholding card enables the payroll process to apply rules and rates defined for the TRU when calculating taxes.

To add a TRU association to the card, click Create Association in the Associations region.

Associations determine:

Which rates and rules held at TRU level apply to the calculation of the components
How the calculations are aggregated for tax reporting

Here's how you configure TRU associations.

If you have	What you can do	How you do it
Multiple TRUs	By default, the card associates all components with the same TRU, except when there are multiple assignments and multiple TRUs. Then you must select a TRU for each assignment. You can't associate the same assignment to multiple TRUs.	Under Associations, click Create Association. Select the additional TRU, and click Go. Do this for each TRU you need to add. Under Associations, click the TRU you added. Under Association Details, click Create Association Details. Select the assignment you're associating with the TRU, and click Go. Click Save and Close.
Multiple assignments	If a person has multiple assignments, you can: Associate them with separate TRUs Associate them with the same TRU	Under Associations, click the TRU you're associating with the assignment. Under Association Details, click Create Association Details. Select the assignment, and click Go. Click Save and Close.

If you have

What you can do

How you do it

Multiple TRUs

By default, the card associates all components with the same TRU, except when there are multiple assignments and multiple TRUs. Then you must select a TRU for each assignment.

You can't associate the same assignment to multiple TRUs.

Under Associations, click Create Association.
Select the additional TRU, and click Go. Do this for each TRU you need to add.
Under Associations, click the TRU you added.
Under Association Details, click Create Association Details.
Select the assignment you're associating with the TRU, and click Go.
Click Save and Close.

Multiple assignments

If a person has multiple assignments, you can:

Associate them with separate TRUs
Associate them with the same TRU

Under Associations, click the TRU you're associating with the assignment.
Under Association Details, click Create Association Details.
Select the assignment, and click Go.
Click Save and Close.

You can't change a TRU association once you have used it with a balance adjustment, payroll run, or QuickPay payroll action.

Note: When using the Employment task to define additional assignments for a person, you can change their primary assignment, but you can't associate it with a different TRU.