1. How do I configure courtesy taxes for the US?
  2. How to Override USOPTE Rules for Courtesy Taxes at the Employee Level

How to Override USOPTE Rules for Courtesy Taxes at the Employee Level

There are cases where you must override the default US Oracle Payroll Tax Engine (USOPTE) courtesy tax withholding rules for an individual employee.

Overview of Your Options

If you need to override these rules, there are a couple options available to you.

You can do this

What it does

Resident wage accumulation

This method determines how the result of one tax calculation affects the results of another.

Taxation address overrides

In cases when a person's home address alone isn't specific enough to identify the proper taxing authority, you use tax address overrides to designate an alternate taxing jurisdiction.

For further info, see the following sections.

How to use resident wage accumulation

In this example, your policy is to provide courtesy tax withholding to all workers except interns. Therefore, you define employee-level exemptions for them. This involves applying the No resident tax if work or resident location mismatch, accrue if taxed resident wage accumulation rule to their resident city.

Note:

These steps assume you're withholding courtesy city taxes for Gahanna, Ohio. So you're now refining those courtesy tax rules to make the distinction between employees and interns.

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

  2. Open their Gahanna city component for editing.

  3. For Resident Wage Accumulation, select No resident tax if work or resident location mismatch, accrue if taxed.

  4. Click Save and Close.

How to use taxation address overrides

In this example, you're withholding courtesy taxes for all applicable employees. However, you have an hourly employee with these conditions.

  1. Works in Columbus, OH

  2. Has a residential mailing address in Gahanna, OH

  3. Does not actually live within the city limits of Gahanna, and is therefore not subject to Gahanna city taxes

For this employee, you set the following tax address override.

  1. Start the Person Management task.

  2. Search for the employee, and in the search results, select their row.

  3. From the Actions menu, select Personal and Employment and then Manage Person.

  4. On Manage Person, click Create Address.

  5. Select the Resident Tax Address type.

  6. Enter the taxation address.

  7. Click OK and then Save and Submit.

    When complete, the taxation address appears on their Person page. The payroll process uses this address for residential taxation purposes.