Override Vertex Rules for Courtesy Taxes at the Employee Level

There are cases where you have to override the default courtesy tax withholding rules for an individual employee.

Overview of Your Options

If you need to override these rules, there are a couple options available to you.

You can do this	What it does
Resident wage accumulation	This method determines how the result of one tax calculation affects the results of another.
Taxation address overrides	In cases when a person's home address alone isn't specific enough to identify the proper taxing authority, you use tax address overrides to designate an alternate taxing jurisdiction.

For further info, see the following sections.

Resident Wage Accumulation

In this example, your policy is to provide courtesy tax withholding to all workers except interns. Therefore, you define employee-level exemptions for them. This involves applying a resident wage accumulation rule of "No resident tax if work or resident location mismatch, accrue if taxed" to their resident city.

Note: These steps assume you're withholding courtesy city taxes for Gahanna, Ohio. So you're now refining those courtesy tax rules to make the distinction between employees and interns. For further info, see Override Vertex Rules for City Courtesy Taxes in the Help Center.

1. In My Client Groups, click Person Management.

2. Perform a search for the intern. Select Show Filters if needed.

3. In the search results, select the intern's row, and select Calculation Cards from the Actions menu.

4. Open their Tax Withholding card for editing.

5. In Withholding Details, expand the OH and Franklin nodes.

6. Select Gahanna. Choose Edit and then Update.

7. For Resident Wage Accumulation, select No resident tax if work or resident location mismatch, accrue if taxed.

8. Click Save and Close.

Taxation Address Overrides

In this example, you're withholding courtesy taxes for all applicable employees. However, you have an hourly employee with this situation.

• Works in Columbus, OH

• Has a residential mailing address in Gahanna, OH

• Does not actually live within the city limits of Gahanna, and is therefore not subject to Gahanna city taxes

For this employee, you set the following tax address override.

1. Start the Person Management task.

2. Search for the employee, and in the search results, select their row.

3. From the Actions menu, select Personal and Employment and then Manage Person.

4. On Manage Person, click the create address + icon.

5. Select the Resident Tax Address type.

6. Enter the taxation address.

7. Click OK and then Save and Submit.

   When complete, the taxation address appears on their Person page. The payroll process uses this address for residential taxation purposes.