Each employee can only have one city/county tax code in the employee master file. If additional city/county tax codes are needed a deduction master file may be used. See the document Codes For Deductions and Additions Master File for complete instructions.
STEP 1:
Payroll (Module 1)
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System management functions (Task 32)
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Modify application tables (Sub-task 17)
- City (county) codes. The table needs to have a line for every city/county income tax.
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Modify application tables (Sub-task 17)
“DR” , “DETROIT”
“GB” , “GIBSNBG”
“TO” , “TOLEDO”
“NR” , “NON-RES”
STEP 2:
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Employee master file (Task 17)
- Change existing employee record (Sub-task 2). Bring up the employees who live/work in the city/county with the income tax.
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Field 27 Cty tx code: GB
- When the cursor is at field 27 the city/county tax code table displays on the screen. Type in the appropriate two character abbreviation.
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Field 31 CTY exmpt:
- If the city/county allows exemptions type in the # of exemptions.
- Type in 99 if you want zero $0.00 withheld for the city/county tax.
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Field 34 Add CWT $:
- Type in the $ amount of additional city/county tax taken out of pay.
- If field 31 is set to 99 for zero taken out, but field 34 is set to a $ amount, the $ amount in field 34 will be the exact amount taken out for the city/county tax.
- This amount can be changed during Task 1 Attendance entry & entering.
STEP 3:
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Tax table maintenance (Task 23)
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Enter new tax record (Sub-task 1)
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Field 1 Tax code: The tax codes are 6 characters:
- The first 2 characters are the same as the 2 digit abbreviation “city tax code” created in the table in step 2, i.e. DR, GB or TO, etc….
- The second 2 characters are the pay frequency, i.e. WK weekly, BI bi-weekly, MO monthly, SM semi-monthly.
- The last 2 characters are the marital status, SL single or MR married.
- Detroit, weekly, single would be DRWKSL
- Toledo, bi-weekly, married would be TOBIMR
- Field 2 Exempt $ amt: This is the exempt amount allowed for the pay frequency. For example if the yearly exempt amount is $4,000.00 & the pay frequency is weekly the exempt amount is $76.92. If the pay frequency is bi-weekly the exempt amount would be $153.85. This amount is multiplied by # of exemptions typed in the employee master file (Task 17), CTY exmpt (field 31), then subtracted from the gross pay to compute the amount of the city tax.
- Field 3 Std $ allow: Straight dollar amount subtracted from pay before tax calculation.
- Field 4 Fed $ exempt: Should federal withholding $ be subtracted from pay before calculating tax? Y/N
- Field 5 Std % allow: Taken from basis BEFORE Std $ allowance & Exemptions amounts, if any.
- Field 6 Basis: If a % is typed in field 5, is this based on T-total gross, F-federal, S-state, C-city, A-FICA or M-medicare.
- Field 7 Minimum $: Minimum dollar allowance (if any) when doing std % calculation.
- Field 8 Maximum $: Maximum dollar allowance (if any) when doing std % calculation.
- Field 09 BREAK POINT: If the pay, after subtraction of exemptions & standard allowances, reaches this amount then use the tax $ and Tax rate % on this line.
- Field 09 TAX: $ amount of tax to be taken out of pay.
- Field 09 RATE: % or tax rate to be take out of pay in addition to the TAX $ amount; 200=2
- Fields 10 – 20 follow the same structure as field 9.
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Field 1 Tax code: The tax codes are 6 characters:
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Enter new tax record (Sub-task 1)
STEP 4:
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General Ledger (Module 4). This should be completed by the person in charge of the General ledger module.
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System management functions (Task 32)
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Setup automatic interface (Sub-task 5)
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Change interface parameters (Sub-task 2). Make sure Payroll is set to Y. Press the enter key until the payroll interface parameters are on the screen.
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Field 9 CWT withheld: This is the G/L account # used on the P/R to G/L interface for the city/county tax withheld.
- When the city/county income tax withheld is paid to the city/county, an A/P voucher will need to be posted & paid. Use the same G/L account # on the A/P voucher.
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Field 9 CWT withheld: This is the G/L account # used on the P/R to G/L interface for the city/county tax withheld.
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Change interface parameters (Sub-task 2). Make sure Payroll is set to Y. Press the enter key until the payroll interface parameters are on the screen.
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Setup automatic interface (Sub-task 5)
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System management functions (Task 32)
REPORT:
Payroll (Module 1)
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Tax reports/forms (Task 10)
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Quarterly 941 / Monthly tax summary PRHSUM (Sub-task 1). Print this report for the selections needed.
- The city/county withholding will be near the bottom of the report:
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Quarterly 941 / Monthly tax summary PRHSUM (Sub-task 1). Print this report for the selections needed.
City withholding (wages = 0.00): 0.00