cancel
Showing results for 
Search instead for 
Did you mean: 

Employee's Local Witholding Tax Not Calculating

Former Member
0 Kudos

I need to add a specific local tax area to a tax type combination that I have identified that has all 3 tax types( 01 , 51 and 84) . When I run a payroll for an employee that has this specific local tax area on their IT 0207 and IT 0208 record no local withholding tax (tax type 01) is being calculated.

What steps/ actions do I need to perform to take care of this?

Thanks,

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Have you looked at the tax models (Tables T5UTE, T5UTM, and T5UTY)?

Wage types (T512W) have a wage type classification (PCL71) that is utilized in the tax model definition.

Tax authorities or areas (T5UTD) are assigned tax types or categories (T5UTT).

Tax combinations (T5UTY) group tax types or categories (T5UTT) that would accumulate for an authorities taxable wage base.

You'll want a tax type combination that groups Tax Types 1, 51, and 84.

Tax authorities or areas are assigned a tax model identifier (T5UTE).

Tax model (T5UTM) contains definitions for resident state taxing [R], work state taxing [W] and Unemployment Insurance taxing [UI]. Each model/R, W, UI has the PCL71 value defined to it with a tax combination (T5UTY).

PCL71 value 1 represents regular wages, tells the system, accumulate all wage types with a value of 1 in PCL71, according to the sign (+, -) in the RT into the wage base tax categories defined in tax combination (T5UTY) 3, (categories 1 through 6 [T5UTT]).

Regards,

Howard

Answers (0)