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

Entering local payroll tax districts

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.

To enter local payroll tax districts:

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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