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Former Member
Dec 02, 2011 at 10:56 PM

CA SIT is not being withheld for an employee working in AZ

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Hi,

We have an employee who is working in AZ and living in CAlif and our company is not using the secondary reciprocation method,

this is the setup in the system IT0207 is CA, IT208 is AZ 100% and IT0209 is AZ so when the taxes are being taken the system is calcualting only the AZ taxes and is doing it correctly, where as it is not reducing the CA state Income tax

And let's assume my company uses secondary method and if I send the reciprocity Nexus Indicator for this scenario then it is taking a combined tax amount for both the states against CA, which is even correct as per the new Nexus indicator, but the problem here it is the dollar amout it is calculating as a combined tax for both the states is greater the Individual state (AZ and CA) taxes in the legasy system

I hope I made my scenario clear, please ask me if you have any questions and any input is greatly appreciated.