How to Set the State Resident Wage Accumulation Rule

You can select which resident wage accumulation rule the payroll process uses when calculating state income tax (SIT).

What you want to do	How you do it
Set the rule on a payroll statutory unit (PSU)	Start the Legal Entity Calculation Cards task, and open the organization calculation card for editing. In Component Groups, select Regional. In Calculation Components, select State Income Tax. In Calculation Component Details, expand State Income Tax Organization Information. Click Edit and then either Update or Correct. Select the appropriate value for Resident Wage Accumulation. For further info, see the following section. Click Save and Close.
Set the rule on a tax reporting unit (TRU)	Start the Legal Reporting Unit Calculation Cards task, and open the organization calculation card for editing. In Component Groups, select Regional. In Calculation Components, select State Income Tax. In Calculation Component Details, expand State Income Tax Organization Information. Click Edit and then either Update or Correct. Select the appropriate value for Resident Wage Accumulation. For further info, see the following section. Click Save and Close. This overrides any values on the parent PSU card.
Set the rule for an individual employee	Start the Calculation Cards task, and open the person's Tax Withholding card for editing. In Withholding Details, select the link for the appropriate state. Click Edit and then Update or Correct. In State Tax Additional Information, select the appropriate value for Resident Wage Accumulation. Click Save and Close. This overrides any values on the PSU or TRU cards.

When using the Only states under state tax rules withholding rule for federal income tax (FIT), select the appropriate Resident Wage Accumulation rule for each state.

If you're using this FIT withholding rule	It does this	And you can select this for Resident Wage Accumulation
All states	Default withholding rule for all states.	The payroll process automatically withholds for all states using the default action for each state.
Only states under state tax rules	From the states you have configured on the card, this identifies which you're withholding resident taxes. For each state you add, you select the appropriate resident wage accumulation rule.	The field displays the values appropriate for the selected state. Select one. Calculate tax independent of all other jurisdictions Credit resident tax by work tax, accumulate wages if taxed Credit resident tax by work tax, always accumulate wages No resident tax if work or residence mismatch, accrue if taxed No resident tax if work tax greater than zero No resident tax if work tax greater than zero, always accrue No resident tax if work tax on nonresident, accrue if taxed No resident tax if work tax on nonresident, always accrue Use default action

For further info, see Oracle Cloud Human Capital Management for United States: Courtesy Tax Implementation (2138998.1) on My Oracle Support.