Configure Wage Basis Rules for City Taxes for the US

In this example, you want to define a wage basis rule to exempt 401 (k) Deferred Compensation contributions from Columbus, Ohio city taxes.

Define the City Tax Wage Basis Rule

1. Start the Component Group Rules task.

2. Search for your US legislative data group.

3. Under Component Group, click Regional.

4. Expand Regional, and then Related Deductions, and then City Tax.

5. Select Wage Basis Rules.

6. Under City Tax: Wage Basis Rules, click Create.

7. Enter an effective date.

   Use either your implementation date or the earliest date a pay period exists.

8. Select OH as the state, Franklin as the county, and Columbus as the city.

9. Select the Pretax Deductions primary classification and Deferred Compensation 401k secondary classification.

10. Select Yes to make this subject to wage basis rules.

11. Click Submit.

12. Repeat these steps for the Deferred Compensation 401k Catch-Up secondary classification.