1. How do I manually define state and local taxes for the US?
  2. How Do I Configure Balances for Manual State and Local Taxes

5How Do I Configure Balances for Manual State and Local Taxes

To configuring balances for state and local taxes you've manually defined:

  1. Define the balance.

  2. Define the balance dimension.

  3. Configure the balance for tax filing.

How you define the balance

Use the Balance Definitions task to define any balances required for the tax and establish their feeds.

In most cases, a tax requires these balances. There can be scenarios where one or more aren't.

Balance name

What it tracks

Withheld or Liability

Calculated amount for the state or local tax.

Reduced Subject Wages

Wages or salary used to calculate the withheld or liability amount for this tax.

Total Wage or Gross

Total wages or gross pay.

Taxable Wages

Taxable wages, which can vary based on the wage basis rules. Because the payroll process doesn't have wage basis rules for local taxes, it uses the state wage-basis rules.

If the state wage-basis rules are incompatible with your local tax, you must define your own local wage-basis rules.
Note:

Don't use the predefined Gross Earnings balance as part of the balances you configure at the enterprise level. This would result in incorrect tax codes.

These balance configurations will vary according to each state or local tax's requirements. Refer to the appropriate tax authority for more info.

You must ensure that you have defined the correct balance feeds for these balances.

How you define the balance dimension

When you create the four balance definitions described in the previous section, you must define them with the balance dimensions appropriate for the tax's archive level. The tax-filing processes consume the balances dimensions at the payroll relationship level. You must define the dimensions at the Relationship Tax Unit level as described in the following table.

For example, for a tax that's at the City level, use the City archive-level balance definitions.

The BASE_DIMENSION_NAME refers to the Global Payroll Name. You would see the TL_DIMENSION_NAME in the Balance Definitions task.

Parameter value

Logging category

DBI suffix

TL_DIMENSION_NAME

Federal

Core Relationship Tax Unit Run

_REL_TU_RUN

Relationship Tax Unit Run

Federal

Core Relationship Tax Unit Payslip

_REL_TU_PAYSLIP

Relationship Tax Unit Payslip

Federal

Core Relationship Tax Unit Year to Date

_REL_TU_YTD

Relationship Tax Unit Year to Date

Federal

Core Relationship Tax Unit Quarter Year to Date

_REL_TU_QTD

Relationship Tax Unit Quarter Year to Date

State

Core Relationship Tax Unit,Area1 Run

_REL_TU_STATE_RUN

Relationship Tax Unit,State Run

State

Core Relationship Tax Unit, Area1 Payslip

_REL_TU_AR1_PAYSLIP

Relationship Tax Unit, Area1 Payslip

State

Core Relationship Tax Unit,Area1 Year to Date

_REL_TU_STATE_YTD

Relationship Tax Unit,State Year to Date

State

Core Relationship Tax Unit,Area1 Quarter Year to Date

_REL_TU_STATE_QTD

Relationship Tax Unit,State Quarter Year to Date

County

Core Relationship Tax Unit,Area1,2 Run

_REL_TU_COUNTY_RUN

Relationship Tax Unit,County Run

County

Core Relationship Tax Unit, Area1,2 Payslip

_REL_TU_AR12_PAYSLIP

Relationship Tax Unit, Area1,2 Payslip

County

Core Relationship Tax Unit,Area1,2 Year to Date

_REL_TU_COUNTY_YTD

Relationship Tax Unit,County Year to Date

County

Core Relationship Tax Unit,Area1,2 Quarter Year to Date

_REL_TU_COUNTY_QTD

Relationship Tax Unit,County Quarter Year to Date

City

Core Relationship Tax Unit,Area1,2,3 Run

_REL_TU_CITY_RUN

Relationship Tax Unit,City Run

City

Core Relationship Tax Unit, Area1,2,3 Payslip

_REL_TU_AR123_PAYSLIP

Relationship Tax Unit, Area1,2,3 Payslip

City

Core Relationship Tax Unit,Area1,2,3 Year to Date

_REL_TU_CITY_YTD

Relationship Tax Unit,City Year to Date

City

Core Relationship Tax Unit,Area1,2,3 Quarter Year to Date

_REL_TU_CITY_QTD

Relationship Tax Unit,City Quarter Year to Date

School District

Core Relationship Tax Unit,Area1,4 Run

_REL_TU_SCHOOL_RUN

Relationship Tax Unit,School Run

School District

Core Relationship Tax Unit, Area1,4 Payslip

_REL_TU_AR14_PAYSLIP

Relationship Tax Unit, Area1,4 Payslip

School District

Core Relationship Tax Unit,Area1,4 Year to Date

_REL_TU_SCHOOL_YTD

Relationship Tax Unit,School Year to Date

School District

Core Relationship Tax Unit,Area1,4 Quarter Year to Date

_REL_TU_SCHOOL_QTD

Relationship Tax Unit,School Quarter Year to Date

How you configure the balance for tax filing

Use the Enterprise HCM Information task to configure the balances you have defined. Include them in the periodic or quarterly tax filing extract.

For each balance you defined:

  1. Start the Manage Enterprise HCM Information task.

  2. Open US Balance Definition for editing.

  3. Click Add Row.

  4. Enter the following.

    Field name

    What you enter

    Legislative Data Group Name

    Select a US legislative data group (LDG).

    Archive Level

    Select the archive level appropriate to the level of the balance.

    Note:

    Don't select Federal for any local taxes. Use Federal for balances with no area contexts, such as taxes that don't apply to the state, county, city, or school district levels.

    Category

    Select the category to match the balance.

    For example, if the category is Withheld or Liability, then the balance name in the next field must be the balance for the actual calculated tax withheld or liability.

    To include the new tax in the third-party tax files, it usually would need four rows in this table, one for each category.

    • Withheld or Liability

    • Reduced Subject Wages

    • Total Wage or Gross

    • Taxable Wages

    Balance Name

    Select the balance's name.

    Tax Code

    Enter the tax code. This code is user-defined, and the payroll process doesn't validate it. You must ensure its accuracy and uniqueness.

    The following formatting rules apply according to the tax category.

    • Federal

      Any alphanumeric value up to 15 characters. Nothing is prefixed to this value.

    • State

      Any alphanumeric value, up to 13 characters. The 2-character state postal code is automatically prefixed to this value.

    • County

      Any alphanumeric value, up to 10 characters. The 2-character state postal code and 3-character county geocode are automatically prefixed to this value.

    • City

      Any alphanumeric value, up to 6 characters. The 2-character state postal code, 3-character county geocode, and 4-character city geocode are automatically prefixed to this value.

    • School District

      Any alphanumeric value, up to 8 characters. A 2-character state postal code and 5-character school geocode are automatically prefixed to this value.

    Note:

    • Advise your tax-filing account manager of this code, so they can properly uptake it for their processing of the local tax.

    • If you're using this tax type for only periodic reporting (Periodic report usage), this field isn't used.

      You can enter any value here.

    • Use the same tax code for each of the four balance categories described above.

    Type

    Select Balance.

    Report Usage

    Select the reporting type for this tax.

    Select Periodic and Quarterly to capture the tax data in the periodic archive. For use in periodic and quarterly tax filing.

    Select Periodic to capture the tax data in the periodic archive only. For use with configured reports.

    Note:

    If you select a balance for archival that's already being archived (such as a predefined balance), the balance is archived twice.

  5. Repeat for each balance you defined for the new tax.

    To include this tax in the third-party tax files, your US Balance Definition table requires these rows. Create one for each category with the same tax code.

    • Withheld or Liability

    • Reduced Subject Wages

    • Total Wage or Gross

    • Taxable Wages

  6. Click Submit.