Jurisdictions for the US

A jurisdiction is a combination of the legislative category (labor law, transaction tax law, income tax laws) and the physical territory (such as group of countries, country, state, county, or parish). The jurisdiction defines the category and territory to which legal rules are grounded.

You use jurisdictions when setting up tax types.

A tax jurisdiction is a geographic area where a tax is levied by a specific tax authority.

The jurisdiction has a start date and end date to show when the jurisdiction is effective and when you can register against the jurisdiction.

For further info, see Overview of Legal Reporting Unit Configuration for the US in the Help Center.

Identifying Jurisdiction

The identifying jurisdiction is usually the first jurisdiction that the legal entity must register with to be recognized in its territory. The registration to the identifying jurisdiction of the legal entity territory is called the identifying registration.

Registrations

You must set up jurisdictions before creating registrations. You register all legal entities against a jurisdiction that's governed by a legal authority.

The jurisdiction can also capture the registration code or the name of the registration number. You can then use the registration code as the prompt for the registration number given the context of the jurisdiction.

Use the Legal Reporting Unit Registrations task to define registrations for each jurisdiction. When you define new jurisdictions set the registration number to employer identification number (EIN) or tax identification number (TIN).

Predefined Jurisdictions

The here's the predefined US jurisdictions and the types of taxes they use.

Jurisdiction	Legislative category	Territory	Usage
United States Federal Tax	Federal Tax	United States	Federal income tax (FIT) Federal unemployment tax (FUTA) Social Security Medicare
<Territory> Income Tax	Income Tax	State	All states and territories with income tax (SIT) One legal jurisdiction for each territory with a SIT tax
<Territory> Unemployment Insurance	Unemployment Insurance Tax	State	All states and territories with unemployment insurance (SUI) tax One legal jurisdiction for each territory with a SUI tax
<Territory> Disability Insurance	Disability Insurance Tax	State	All states and territories with a disability insurance (SDI) tax One legal jurisdiction for each territory with a SDI tax

To view these predefined jurisdictions, use the Legal Jurisdictions task.

Note: Local taxes use the Local Tax legislative category. They aren't included in this table because there are no predefined local tax jurisdictions. Create the local jurisdiction and then create the local tax registration, using the Local Tax legislative category and local jurisdiction.

Local Tax Jurisdictions

You can create a local tax jurisdiction if you're withholding for specific local taxes, such as cities and counties. You must create this jurisdiction before you can create a registration for that local.

Note: Local taxes aren't supported for retirees.

To create local tax jurisdictions:

Start the Legal Jurisdictions task from the implementation project task list.
Click Create.
On the Create Legal Jurisdiction page, enter a name.
Select the appropriate local jurisdiction as the territory.
Select the Local Tax legislative category.
Select No in Identifying.
Select Legal Entity Registration Number as the legal reporting unit registration code.
Click Save and Close.