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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

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.

    The payroll calculation uses the rates from 5-3-6 Local Payroll Taxes.

  4. In the Tax Locale drop-down box, select the locale that uses the calculation.

    Note: You must create a payroll calculation for each locale.

  5. If the local payroll tax district allows employees an annual exemption:

    1. 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.

    2. In the Add Allow text box, enter the annual dollar amount for additional allowances. This is an additional amount to be withheld.