Calculation Rules for Regional Taxes

You can define the following regional calculation rules on the legal entity or legal reporting unit organization card.

Tax Type	What you can select	What it does
City tax	Resident wage accumulation	Identifies the appropriate resident wage accumulation method. Do this on Calculation Component Details of the City Tax component.
	Taxation threshold hours	Sets the number work hours after which the payroll process begins calculating and withholding taxes. This field is informational and doesn't affect tax calculations. Do this on Calculation Component Details of the City Tax component.
County tax	Resident wage accumulation	Selects the appropriate resident wage accumulation method. Do this on Calculation Component Details of the County Tax component.
	Taxation threshold hours	Sets the number work hours after which the payroll process begins calculating and withholding taxes. This field is informational and doesn't affect tax calculations. Do this on Calculation Component Details of the County Tax component.
Limit taxes	State Tax Limit Enforcement Level	Defines how the payroll process tracks limits for state limit taxes. You can select the following. Payroll Statutory Unit Tax Group Tax Reporting Unit To set this override for all state limit taxes, use Enterable Calculation Values on Calculation Cards on the FIT component. To set this override for individual taxes, use Enterable Calculation Values on Calculation Cards on the appropriate regional tax component. This overrides the setting on the FIT component.
State disability insurance (SDI)	Self-Adjustment Method	You can select the following. No self adjust Payroll process doesn't perform any adjustments based on changes to tax rates. You're responsible for ensuring the correct withholding values for your employees. Quarterly self adjust Payroll process performs adjustments for rate changes on a quarterly basis. Use this method in cases when a state changes its rate midyear. By checking each quarter individually to determine adjustments, it maintains the integrity of the calculations before the change. Self adjust Payroll process performs adjustments for rate changes during the first available payroll run. It bases the withholding calculations on year-to-date earnings, rather than earnings within a pay period. This method provides the most accurate calculation. Self adjust at maximum Payroll process takes no action until an employee reaches their yearly maximum wage limit. Then it performs any adjustments during the first available payroll run. Do this on Calculation Component Details of the State Disability component.
	Default Disability Plan	You can select the following. Private Plan State Plan Do this on Enterable Calculation Values on Calculation Cards of the State Disability component.
	Employee Tax Exemption	Indicates options for exempting SDI employee wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State Disability component.
	Employer Tax Exemption	Indicates options for exempting SDI employer wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State Disability component.
	SDI Employee Rate	Sets the rate override for those states where the employee pays SDI. Do this on Enterable Calculation Values on Calculation Cards of the State Disability component.
	SDI Employer Rate	Sets the rate override for those states where the employer pays SDI. Do this on Enterable Calculation Values on Calculation Cards of the State Disability component.
Voluntary Plan Disability Insurance (VPDI)	VPDI Self Adjustment Method	You can select the following. No self adjust Payroll process doesn't perform any adjustments based on changes to tax rates. You're responsible for ensuring the correct withholding values for your employees. Self adjust Payroll process performs adjustments for rate changes during the first available payroll run. It bases the withholding calculations on year-to-date earnings, rather than earnings within a pay period. This method provides the most accurate calculation. Self adjust at maximum Payroll process takes no action until an employee reaches their yearly maximum wage limit. Then it performs any adjustments during the first available payroll run. Do this on Calculation Component Details of the State Disability component. If you don't enter a value here: The payroll process uses the SDI self-adjustment override. If there's no SDI self-adjustment override, the process uses the default state behavior.
	VPDI Employee Rate	If using a private voluntary plan disability insurance (VPDI) plan, provide the employee rate. If you don't enter a value here, the payroll process uses the SDI employee rate. Do this on Enterable Calculation Values on Calculation Cards of the State Disability component.
	VPDI Employee Wage Limit	Overrides a private VPDI plan's employee wage limit. Do this on Enterable Calculation Values on Calculation Cards of the State Disability component.
	VPDI Employer Rate	If using a private VPDI plan, provide the employer rate. Do this on Enterable Calculation Values on Calculation Cards of the State Disability component.
	VPDI Employer Wage Limit	Overrides a private VPDI plan's employer wage limit. Do this on Enterable Calculation Values on Calculation Cards of the State Disability component.
State family and medical leave insurance (FMLI)	Family Leave Reclassification	For Delaware employees, select Yes to include income earned outside Delaware that is eligible for Delaware FMLI. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	FLI Combined Rate	For eligible states, sets the total rate for employee plus employer family leave insurance (FLI) contributions. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	FLI Employee Percentage	For eligible states, sets the percentage for employee FLI contributions. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	FLI Employee Tax Exemption	For eligible states, indicates options for exempting FLI employee wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	FLI Employer Percentage	For eligible states, sets the percentage for employer family leave insurance (FLI) contributions. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	FLI Employer Tax Exemption	For eligible states, indicates options for exempting FLI employer wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	MLI Combined Rate	For eligible states, sets the total rate for employee plus employer medical leave insurance (MLI) contributions. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	MLI Employee Percentage	For eligible states, sets the percentage for employee MLI contributions. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	MLI Employee Tax Exemption	For eligible states, indicates options for exempting MLI employee wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	MLI Employer Percentage	For eligible states, sets the percentage for employer MLI contributions. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	MLI Employer Tax Exemption	For eligible states, indicates options for exempting MLI employer wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	PLI Combined Rate	For eligible states, sets the total rate for employee plus employer parental leave insurance (PLI) contributions. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	PLI Employee Percentage	For eligible states, sets the percentage for employee PLI contributions. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	PLI Employee Tax Exemption	For eligible states, indicates options for exempting PLI employee wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	PLI Employer Percentage	For eligible states, sets the percentage for employer PLI contributions. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	PLI Employer Tax Exemption	For eligible states, indicates options for exempting PLI employer wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
	Self Adjust Method for Family Leave Insurance	You can select the following. No self adjust Payroll process doesn't perform any adjustments based on changes to tax rates. You're responsible for ensuring the correct withholding values for your employees. Self adjust Payroll process performs adjustments for rate changes during the first available payroll run. It bases the withholding calculations on year-to-date earnings, rather than earnings within a pay period. This method provides the most accurate calculation. Self adjust at maximum Payroll process takes no action until an employee reaches their yearly maximum wage limit. Then it performs any adjustments during the first available payroll run. Do this on EnterableCalculation Values on Calculation Cards of the State FLI component.
	Wage Limit	For eligible states, sets the FMLI wage limit, including FLI, MLI, and PLI. Do this on Enterable Calculation Values on Calculation Cards of the State FLI component.
State long term care (LTC)	Employee Tax Exemption	For eligible states, indicates options for exempting State Long Term employee wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State LTC component.
	Long Term Care Insurance Employee Percentage	For eligible states, sets the percentage for employee LTC contributions. Do this on Enterable Calculation Values on Calculation Cards of the State LTC component.
	Long Term Care Insurance Wage Limit	For eligible states, overrides the wage limit for employee LTC. Do this on Enterable Calculation Values on Calculation Cards of the State LTC component.
State income tax (SIT)	Calculate PA Resident Tax for Non-PA Work Location	For Pennsylvania, enables the calculation of Pennsylvania resident taxes for employees working in locations out of the state. Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
	City Tax Withholding Rule	Indicates if all earnings are taxed based on the defined city tax withholding rule. Do this on Calculation Component Details of the State Income Tax component.
	County Tax Withholding Rule	Indicates if all earnings are taxed based on the defined county tax withholding rule. Do this on Calculation Component Details of the State Income Tax component.
	Exempt from State Transit Tax	For eligible states, indicates options for exempting State Transit Tax wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
	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. Do this on Calculation Component Details of the State Income Tax component.
	Regular and Supplemental Tax Calculation Method	Indicates how the payroll process taxes when both regular and supplemental earnings are processed in a pay run. You can select the following. Annualized Annualized Concurrent Aggregation Concurrent Aggregation Cumulative Default Method Flat Rate Combined Percent of Federal Tax Combined Tiered Flat Rate Combined Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
	Supplemental Tax Calculation Method	Indicates how the payroll process taxes supplemental earnings. You can select the following. Aggregation Alternate Annualized Alternate Flat Rate Annualized Annualized Previous Aggregations Default Method Flat Rate Flat Rate Combined Percentage of Federal Tax Tiered Flat Rate Do this on Calculation Component Details of the State Income Tax component.
	Tax Exemption	For eligible states, indicates options for exempting State Income Tax wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
	TCD Combined Filing Proxy	For registered combined filers for Pennsylvania Act 32 taxes, specifies the Tax Collection District (TCD) combined-filing proxy. Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
	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 miscellaneous	Exempt From Metro Tax	For eligible states, indicates options for exempting State Metro Tax wages and taxes. You can select the following. Yes Doesn't accumulate wages or withhold taxes. No Accumulates wages and withhold taxes. Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
	Exempt Metro Tax From Partial City Withholding Jurisdictions	You can select the following. Yes Doesn't accumulate wages. Doesn’t withhold taxes for these jurisdictions. No Accumulates wages. Withholds taxes for these jurisdictions. Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
	Exempt Metro Tax On Supplemental Wages Below Annualized Threshold	You can select the following. Yes - Based on annualized combined wages Fully taxes supplemental wages when the combined annualized regular and supplemental earnings exceed the threshol. Yes – Based on annualized regular and periodic supplemental wages Fully taxes supplemental wages when the combined annualized regular and periodic supplemental earnings exceed the threshold. Yes – Based on annualized regular wages Fully taxes supplemental wages when the annualized regular earnings exceed the threshold. No – Supplemental wages taxed on first dollar Taxes supplemental wages on the first dollar. Taxes regular wages when the annualized amount exceeds $200,000. Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
State unemployement insurance (SUI)	Credit Employee SUI Wages Earned in Other States	Enforces how the payroll process calculates SUI employee wage credits for employee transfers. For example, some don't give credit for SUI paid in other work states. Do this on Enterable Calculation Values on Calculation Cards of the State Unemployment Tax component.
	Credit Employer SUI Wages Earned in Other States	Enforces how the payroll process calculates SUI employer wage credits for employee transfers. For example, some don't give credit for SUI paid in other work states. Do this on Enterable Calculation Values on Calculation Cards of the State Unemployment Tax component.
	Employee Tax Exemption	For eligible states, indicates options for exempting SUI employee wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
	Employer Tax Exemption	For eligible states, indicates options for exempting SUI employer wages and taxes. You can select the following. Not exempt Exempt from tax withholding Exempt from wage accumulation and tax withholding Do this on Enterable Calculation Values on Calculation Cards of the State Income Tax component.
	Self Adjustment Method	You can select the following. No self adjust Payroll process doesn't perform any adjustments based on changes to tax rates. You're responsible for ensuring the correct withholding values for your employees. Quarterly self adjust Payroll process performs adjustments for rate changes on a quarterly basis. Use this method in cases where a state changes its rate midyear. By checking each quarter individually to determine adjustments, it maintains the integrity of the calculations before the change. Self adjust Payroll process performs adjustments for rate changes during the first available payroll run. It bases the withholding calculations on year-to-date earnings, rather than earnings within a pay period. This method provides the most accurate calculation. Self adjust at maximum Payroll process takes no action until an employee reaches their yearly maximum wage limit. Then it performs any adjustments during the first available payroll run. Do this on Calculation Component Details of the State Unemployment component.
	SUI Employee Rate	Sets the rate override for those states where the employee also pays SUI. Do this on Enterable Calculation Values on Calculation Cards of the State Unemployment component.
	SUI Employer Rate	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 Do this on Enterable Calculation Values on Calculation Cards of the State Unemployment component.
	SUI Wage Limit for Employee	Overrides the predefined SUI employee wage limits. For further info, see Wage Limits for State Unemployment Insurance. Do this on Enterable Calculation Values on Calculation Cards of the State Unemployment component.
	SUI Wage Limit for Employer	Overrides the predefined SUI employer wage limits. For further info, see Wage Limits for State Unemployment Insurance. Do this on Enterable Calculation Values on Calculation Cards of the State Unemployment component.