3Are there predefined wage basis rules for local taxes?

There are no predefined wage basis rules for local taxes. By default, local taxes follow the wage basis rules of their state. However, there are some exceptions.

For example:

• In Colorado, all Pretax elements are taxable at the local levels.

• In Ohio, Deferred Compensation 401k and Deferred Compensation 401k Catch-Up elements are subject to city tax.

• In Kentucky, all Section 125 elements are taxable at the local levels.

If you require different rules, you must define them manually.

If you define wage basis rules at the local level, you must define wage basis rules for all primary and secondary classifications for that locality, including predefined and user-defined classifications.