Consider the following points before entering payroll tax districts:
Important! If employees work in New York City or Yonkers, you must set up a special tax district in order to calculate taxes correctly.
Important! Do not use local payroll tax districts for State Unemployment or other non-income tax purposes.
| 1 | Open 5-3-6 Local Payroll Taxes. |
| 2 | In the District# cell, enter the district number. |
| 3 | In the District Name cell, enter a description of the district. |
| 4 | In the Resident Rate cell, enter the rate paid by residents. |
| 5 | In the Non-resident Rate cell, enter the rate paid by non-residents. |
Important!
If the district does not make a distinction between residents and non-residents, enter the same rate in the Resident Rate and Non-resident Rate cells.
| 6 | In the Tax State cell, enter the state abbreviation. |
| 7 | Repeat steps 2–6 for each tax district. |
| 8 | On the File menu, click Save. |
| 9 | Set up the payroll calculation type for each district created. |
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Combining local payroll tax districts Setting up payroll calculations for local payroll tax districts Setting up a local payroll tax district like a state income tax |
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