Working with 5-Payroll > 5-3 Payroll Management > 5-3-6 Local Payroll Tax > Setting up payroll calculations for local payroll tax districts

Setting up payroll calculations for local payroll tax districts

Important! If you use calculation methods 2-Percent Total Taxable Wages, or 7-Percent Other Calculation, local payroll taxes will not be displayed on the Local Tax Reports and the wages will not be displayed on the W-2 forms.

To set up a payroll calculation for a local payroll tax district:

1 Open 5-3-1 Payroll Calculations.
2 In the Tax Type list, click 13-Local Income Tax.
3 In the Calculation Method list, select 17-Tables.
4 The payroll calculation uses the rates from 5-3-6 Local Payroll Taxes.
5 In the Tax Locale drop-down box, select the locale that uses the calculation.
6 You must create a payroll calculation for each locale. Some local payroll tax districts allow employees an annual exemption.
7 In the Std Allow text box, enter the annual dollar amount for standard allowances. This is the amount withheld for single, married, and so forth.
8 In the Add Allow text box, enter the annual dollar amount for additional allowances. This is an additional amount to be withheld.

Links to more information . . .

Entering local payroll tax districts

Combining local payroll tax districts

Creating a table of states

Setting up a local payroll tax district like a state income tax

Viewing the details for local payroll tax districts

More resources

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