Entering local payroll tax districts
Combining local payroll tax districts
Setting up payroll calculations for local payroll tax districts
Setting up a local payroll tax as a flat tax
Caution! Do not assign the locality as a default on the Human Resources tab of the 5-2-1 Employees window. Also, do not assign the locality to a job record.
Some regions impose a flat tax on all residents, such as a transit tax, where the same rate applies regardless of where the employee works. Use the following steps to set up a local payroll tax district.
Important! Do not enter rates in the Resident Rate and Non-resident Rate cells. Sage 100 Contractor will use the rate from the payroll calculation.
To set up a local payroll tax district like a state income tax:
- Open 5-3-1 Payroll Calculations.
- In the Tax Type list, click 13-Local Income Tax.
- In the Calculation Method list, click 2-Percent Total Taxable Wages.
- In the Default Rate cell, enter the income tax rate.
- In the Tax Locale list, click the local payroll tax district.
- Update the new payroll calculation to the Calculations tab in 5-2-1 Employees as needed.
Caution! After you include the payroll calculation on the Calculations tab of the employee records, Sage 100 Contractor uses the payroll calculation like the state and federal income tax calculations.