Configure State Tax Withholding for Courtesy Taxes
Vertex provides the tax data that determines:
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What resident state taxes the payroll process withholds for employees
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When it withholds them
Each state has its own withholding and reciprocity rules. For further info about each state's default behavior, see Calculation Guide for the United States Vertex Payroll Tax Q Series.
These tax withholding rules determine the resident wage accumulation rules available to you. The federal and state withholding forms provide the default tax withholding info for the payroll process.
However, as their employer, you may not be required to withhold resident state taxes. In such cases, the withholding is considered a courtesy. For further info, see Override Vertex Rules for State Courtesy Taxes in the Help Center.
When using the Only states under state tax rules withholding rule for federal income tax (FIT), select the appropriate Resident Wage Accumulation rule for each state.
If you're using this FIT withholding rule |
It does this |
And you can select this for Resident Wage Accumulation |
---|---|---|
All states |
Default withholding rule for all states. |
The payroll process automatically withholds for all states using the default action for each state. This is described in the Calculation Guide for the United States Vertex Payroll Tax Q Series. |
Only states under state tax rules |
From the states you have configured on the card, this identifies which you're withholding resident taxes. For each state you add, you select the appropriate Resident Wage Accumulation rule. |
Select one:
For further info, see Calculation Guide for the United States Vertex Payroll Tax Q Series. |