3How Do I Configure Deduction Elements for Manual State and Local Taxes

When manually defining state and local taxes, this is how you configure the deduction elements.

What you need to do	How you do it
Define the element	Use the Elements task to define an element for each state and local tax. These elements should use the Employer Taxes primary classification, although other classifications like Employer Liabilities are acceptable for legacy elements. Answer all other prompts in the Create Element template as appropriate for the tax you're defining. Be sure to include contexts as is appropriate for the tax (state, county, city, and school district). To ensure data passes correctly from the base element to the results element, you must set the priority of the results element so that it processes after the base element.
Set the input values	Depending on the tax you're defining, create State, County, City, and School District input values as needed. You must define State, County, and City with display sequences of 1, 2, and 3 respectively. Note: If the element has input values that already use these sequences, you must change them. Set an appropriate value for Reference. This sets the appropriate default validation source.
Configure the fast formula	When you complete the new element definition, the task automatically creates one or more default fast formulas. Use the Fast Formulas task to modify the calculator formula to correctly calculate the state or local tax. The changes you make are dependent upon the tax's specific tax rules. For further info, see your state or local tax authority. Modify the processing rules on the formula results. Set the contexts on the results element as needed.

What you need to do

How you do it

Define the element

Use the Elements task to define an element for each state and local tax. These elements should use the Employer Taxes primary classification, although other classifications like Employer Liabilities are acceptable for legacy elements. Answer all other prompts in the Create Element template as appropriate for the tax you're defining.

Be sure to include contexts as is appropriate for the tax (state, county, city, and school district).

To ensure data passes correctly from the base element to the results element, you must set the priority of the results element so that it processes after the base element.

Set the input values

Depending on the tax you're defining, create State, County, City, and School District input values as needed. You must define State, County, and City with display sequences of 1, 2, and 3 respectively.

Note:

If the element has input values that already use these sequences, you must change them.

Set an appropriate value for Reference. This sets the appropriate default validation source.

Configure the fast formula

When you complete the new element definition, the task automatically creates one or more default fast formulas.

Use the Fast Formulas task to modify the calculator formula to correctly calculate the state or local tax. The changes you make are dependent upon the tax's specific tax rules. For further info, see your state or local tax authority.

Modify the processing rules on the formula results. Set the contexts on the results element as needed.