Calculation Rules for Regional Taxes

You can define the following regional calculation rules on the payroll statutory unit (PSU) organization card.

Tax Type	What you can select	What it does
State disability insurance (SDI)	Self-Adjustment Method	Evaluates the earnings and tax amounts to ensure they're correct with a given tax rate. When all subject earnings reach the annual maximum limit, the payroll process no longer calculates the tax.
	SDI Employee Rate override	Sets the rate override for those states where the employee pays SDI.
State family leave insurance (FLI)	Exempt from Family Leave Insurance	For eligible states, identifies all employees in the PSU as exempt.
	Family Leave Insurance Wage Limit	For eligible states, sets the wage limit for this PSU.
	FLI Employee Percentage	For eligible states, sets the percentage for employee FLI contributions.
	FLI Employer Percentage	For eligible states, sets the percentage for employer FLI contributions.
State medical leave insurance (MLI)	Exempt from MLI Employer Liability	For eligible states, identifies this PSU as exempt.
	MLI Employee Percentage	For eligible states, sets the percentage for employee MLI contributions.
	MLI Employer Percentage	For eligible states, sets the percentage for employer MLI contributions.
State long term care (LTC)	Exempt From Long Term Care Insurance	For eligible states, identifies all employees in the PSU as exempt.
	Long Term Care Insurance Employee Percentage	For eligible states, sets the percentage for employee LTC contributions.
	Long Term Care Insurance Wage Limit	For eligible states, overrides the wage limit for this PSU.
State income tax (SIT)	Calculate PA Resident Tax for Non-PA Work Location	For Pennsylvania PSUs, enables the calculation of Pennsylvania resident taxes for employees working in locations out of the state.
	City Tax Withholding Rule	Indicates if all earnings are taxed based on the defined city tax withholding rule.
	County Tax Withholding Rule	Indicates if all earnings are taxed based on the defined county tax withholding rule.
	Resident Wage Accumulation	Identifies the appropriate resident wage accumulation method. The payroll process automatically withholds for all states using the default action for each state.
	Supplemental Tax Calculation Method	Indicates how the payroll process taxes supplemental earnings. You can select the following. Aggregation Alternate Flat Rate Annualized Previous Aggregations Default Method Flat Rate Flat Rate Combined Percentage of Federal Tax Tiered Flat Rate Tiered Flat Rate, Multiple Tables
	TCD Combined Filing Proxy	For registered combined filers for Pennsylvania Act 32 taxes, specifies the Tax Collection District (TCD) combined-filing proxy.
	Enable Period-to-Date Tax Calculation	Taxes multiple payroll runs as if they're paid as one payment. You configure this at the FIT level. For further info, see Calculation Rules for Federal Taxes in the Help Center.
State unemployement insurance (SUI)	Credit Employer SUI Wages Earned in Other States	Enforces how the payroll process calculates SUI wage credits for employee transfers. For example, some don't give credit for SUI paid in other work states.
	Self-Adjustment Method	Evaluates the earnings and tax amounts to ensure they're correct with a given tax rate. When all subject earnings reach the annual maximum limit, the payroll process no longer calculates the tax.
	SUI Employee Rate override	Sets the rate override for those states where the employee also pays SUI.
	SUI Employer Rate override	Sets the rate override. Employer contribution payments under the SUI compensation laws vary based on each employer's experience with unemployment. The employer experience rate varies for every employer and changes over time. In general, the less involuntary unemployment your workers experience, the lower your rate. Note: For states that have taxes in conjunction with SUI or SDI, you must increase your SUI or SDI employer rates appropriately. Carefully examine your state-issued rate notifications to determine if the state has included these special taxes in the overall rate notification. For example, the following special taxes are cases where this kind of SUI rate adjustment would be required. Kentucky SUI Service Capacity Upgrade Fund Massachusetts SUI Workforce Training Fund Nevada SUI Career Enhancement Program Nevada SUI Bond Obligation Assessment South Carolina SUI Administration Contingency Assessment
	SUI Wage Limit for Employer	Establishes SUI wage limits at the TRU and PSU levels. For further info, see Wage Limits for State Unemployment Insurance in the Help Center.
County Tax	Resident wage accumulation	Identifies the appropriate resident wage accumulation method.
	Taxation threshold hours	Sets the number work hours after which the payroll process begins calculating and withholding taxes. This field is informational.
City Tax	Resident wage accumulation	Selects the appropriate resident wage accumulation method.
	Taxation threshold hours	Sets the number work hours after which the payroll process begins calculating and withholding taxes. This field is informational.

To define these calculation rules:

1. To define them at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   To define them at the tax reporting unit (TRU) level, start the Legal Reporting Unit Calculation Cards task.

   Settings at the TRU level override those at the PSU level.

2. In Component Groups, select the appropriate regional component.

   Create it if it doesn't exist.

3. Provide the effective date, and select the appropriate calculation component.

4. In Calculation Component Details, set the values you want to use.

   You must click Save before you can add any county or city rules.

5. Repeat these steps to define the appropriate values at the county and city levels.