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
-
Start the Component Group Rules task.
-
Search for your US legislative data group.
-
Under Component Group, click Regional.
-
Expand Regional, and then Related Deductions, and then City Tax.
-
Select Wage Basis Rules.
-
Under City Tax: Wage Basis Rules, click Create.
-
Enter an effective date.
Use either your implementation date or the earliest date a pay period exists.
-
Select OH as the state, Franklin as the county, and Columbus as the city.
-
Select the Pretax Deductions primary classification and Deferred Compensation 401k secondary classification.
-
Select Yes to make this subject to wage basis rules.
-
Click Submit.
-
Repeat these steps for the Deferred Compensation 401k Catch-Up secondary classification.