State Tax Withholding Rules

The US Oracle Payroll Tax Engine (USOPTE) provides the tax rule data that determines:

What resident state taxes the payroll process withholds for employees
When it withholds them

Each state has its own withholding and reciprocity rules.

These tax withholding rules determine the available resident wage accumulation rules. The federal and state withholding forms provide the default tax withholding info for the payroll process.

Here's how you can change these rules.

What you want to do	How you do it
Define default state and local withholding	By default, the payroll process calculates state and local deductions based on the definitions provided by USOPTE. You can set these defaults at the organization level and then set overrides for individual employees. For further info, see How to Configure Default State and Local Tax Withholding in the Help Center.
Set the state and resident wage accumulation rules at the organization level	Start the Legal Entity Calculation Cards or Legal Reporting Unit Calculation Cards task. Select which resident wage accumulation rule the payroll process uses when calculating state income taxes (SIT). For further info, see How to Add Regional Tax Withholding Info to Employee Tax Cards in the Help Center.
Set the state and resident wage accumulation rules for individual employees	Use the Calculation Entities task to set resident wage accumulation rules at the state and local levels on the employee's tax card. This overrides the value you set at the organization level. For further info, see How to Set the State Resident Wage Accumulation Rule in the Help Center.

What you want to do

How you do it

Define default state and local withholding

By default, the payroll process calculates state and local deductions based on the definitions provided by USOPTE.

You can set these defaults at the organization level and then set overrides for individual employees.

For further info, see How to Configure Default State and Local Tax Withholding in the Help Center.

Set the state and resident wage accumulation rules at the organization level

Start the Legal Entity Calculation Cards or Legal Reporting Unit Calculation Cards task.
Select which resident wage accumulation rule the payroll process uses when calculating state income taxes (SIT).

For further info, see How to Add Regional Tax Withholding Info to Employee Tax Cards in the Help Center.

Set the state and resident wage accumulation rules for individual employees

Use the Calculation Entities task to set resident wage accumulation rules at the state and local levels on the employee's tax card.

This overrides the value you set at the organization level.

For further info, see How to Set the State Resident Wage Accumulation Rule in the Help Center.