How to Configure Default State and Local Tax Withholding

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

You can find this value	In this task
Home Address	Person
Resident Tax Address	Person
Location	Employment
Working at Home	Employment
Work Tax Address	Employment

Organization-level configuration

To override these values for your organization:

1. Start the Legal Entity Calculation Cards or Legal Reporting Unit Calculation Cards tasks.

2. Set the overrides.

3. Use the Calculation Entities task to configure employee tax cards.

4. Click Create Default State and Local Withholding to define regional components based on organization card defaults.

Employee-level configuration

You can create regional components on a person's tax card that are based on their work and resident addresses.

1. Open the person's Tax Withholding card for editing.

2. In Withholding Details, click Add Tax Withholding and select Create Default State and Local Withholding.

   This creates the regional components based on the employee's home and work locations.