What are tax groups?

Tax groups enable the aggregation of multiple tax reporting units (TRUs) within a payroll statutory unit (PSU) to track federal and state wage and tax limits during payroll processing.

This ensures the process accurately tracks legislative wage and tax limits for employees across all assignments within the group.

You need to perform these steps before you process the first payroll of the calendar year.

Once you've configured the tax group and run payroll for it, you can end date it only as of December 31.

How to configure the PSU

To configure the PSU for the tax group:

1. Open the PSU calculation card for editing.

2. In Component Groups, click Tax Group.

3. Under Calculation Component Details, click Create.

4. Select Tax Group under Calculation Component.

5. Enter a meaningful name for the tax group.

6. Click Save.

How to assign TRUs to the tax group

To associate TRUs with the tax group.

1. Open the TRU calculation card for editing.

   The TRU must belong to the tax group's PSU.

2. In Component Groups, click Tax Group.

3. Under Calculation Component Details, click Create.

4. Select Associated Tax Reporting Unit under Calculation Component.

5. Select the tax group as the parent calculation component.

6. Select the TRU you want to add.

7. Click OK and Save.

8. Repeat these steps to select other TRUs.