Override Vertex Rules for City Courtesy Taxes

Vertex defines the default rules for how the payroll process handles city courtesy taxes. However, there are cases where you may want to override them.

In this example, you're disabling all courtesy withholding for all locals in Ohio, except for the city of Gahanna.

You have some employees working in Columbus, Ohio and living in Gahanna. They have requested you withhold local courtesy taxes for Gahanna, and you have agreed to the courtesy withholding for those employees. The default Vertex behavior is to withhold taxes for all cities that don't give a full credit for the work place city tax. You want to override those rules and only withhold for selected cities as a courtesy.

Note: This example assumes you have performed some configuration at the state level. For further info, see Override Vertex Rules for State Courtesy Taxes in the Help Center.

Overview

This example consists of the followings tasks.

1. Disabling all courtesy withholding for Ohio.

2. Enabling courtesy withholding for Gahanna.

Disable Ohio Courtesy Withholding

To disable all city courtesy withholding in Ohio at the tax reporting unit level:

1. Start the Legal Reporting Unit Calculation Cards task from your implementation project.

2. In Calculation Components, select OH State Income Tax.

3. In Calculation Component Details, expand State Income Tax Organization Information.

4. For Tax Withholding Rules, select Only cities under city tax rules.

   This stops all courtesy taxation for cities within this state.

Enable Gahanna Courtesy Withholding

To enable courtesy withholding only for Gahanna:

1. Add the county of Franklin and then the city of Gahanna.

   1. In Calculation Card Overview, select Ohio's state node.

   2. Select Add from the Actions menu.

   3. Select the county of Franklin, and click OK.

   4. Select the county's node.

   5. Select Add from the Actions menu.

   6. Add Gahanna.

2. Enable courtesy taxes for Gahanna.

   1. In Calculation Card Overview, select Gahanna's node.

   2. In Calculation Components, select Income Tax.

   3. In Calculation Component Details, expand City Income Tax Organization Information.

   4. For Resident Wage Accumulation, select Use default behavior.

3. Click Save and Close.