Working with 5-Payroll > 5-3 Payroll Management > 5-3-6 Local Payroll Tax > Combining local payroll tax districts

Combining local payroll tax districts

You can combine individual districts to create a new district. The combined district does not require a payroll calculation, because Sage 100 Contractor uses the payroll calculations already set up for the individual districts. You can then assign the combined district to the appropriate job or employee records.

A combined local payroll tax district only requires a district number, district name, and the district numbers you want to combine. Suppose you have already set up tax districts 2 and 3, which calculate a city income tax and a county income tax. A recently hired employee lives in an area where both districts apply. Because you can only assign one district to an employee record, create a new district that combines the existing districts. You create district 4 with the following description: City & County (2,3). You can then assign district 4 to the employee record.

To combine local payroll tax districts:

1 Open 5-3-6 Local Payroll Tax.
2 In the District# cell, enter the district number of the new combined district.

Important! The combined district must appear in the list after the districts you are combining. For example, you cannot create a district on line 1 that combines districts on lines 2 and 3.

3 In the District Name cell, enter the name of the district and the district numbers that you want to combine.
4 For example, enter district named City & County (2, 3) in the district name cell to combine the tax districts.

Important! Be sure to separate the districts using commas and enclose them in parentheses.

5 In the Tax State cell, enter the state for the district.
6 On the File menu, click Save.

Tip: Combined districts do not require tax rates. The districts you are combining already contain the tax rates.

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