How to Configure State Limit Taxes

By default, the payroll process tracks all state taxes with limits at the individual tax reporting unit (TRU) level, such as state unemployment insurance (SUI), state disability insurance (SDI), family and medical leave insurance (FMLI), and long-term care (LTC).

However, you can override this default and track your state-level limit taxes at the parent payroll statutory unit (PSU) level.

Perform this configuration before your first payroll run of the calendar year.

1. Start the Legal Entity Calculation Cards task from your implementation project.

2. Search for and select your PSU calculation card.

3. In Component Groups, select the state node of the tax you're configuring.

   Create it if it doesn't exist.

4. In Calculation Components, select the tax you're configuring.

   Create it if it doesn't exist.

5. Select Enterable Calculation Values on Calculation Cards.

6. Click Create.

7. In Display Value, search for select State tax limit enforcement level.

8. In Value, select the limit tax enforcement level.

9. Click OK.

10. Click Save and Close.

To apply an enforcement level for all state taxes:

1. Open the PSU calculation card for editing.

2. In Component Groups, select Federal.

3. In Calculation Components, select Federal Income Tax.

4. Select Enterable Calculation Values on Calculation Cards.

5. Click Create.

6. In Display Value, search for select State tax limit enforcement level.

7. In Value, select the limit tax enforcement level.

8. Click OK.

9. Click Save and Close.