State/City Tax Code File application allows the user to enter all information connected with the State and City Tax codes so that state withholding, city withholding, and other state tax costs can be calculated automatically for each employee during the Calculate Payrollapplication. The user also defines the General Ledger account numbers used for automatically posting withheld tax amounts to the proper General Ledger accounts, as well as all data concerning worker's compensation premiums, on a state‑by‑state basis.
The first screen appears differently for a State Tax code than for a City Tax code. Only the first seven fields appear if the entry is for a City Tax code. In this case, the tax liability account is for CWT. For a state code, the tax liability account is for SWT. Also, there are entries for State Unemployment Insurance (SUI) and other state tax (OST). (NOTE: In California, as in some other states, this state tax is SDI [State Disability Insurance]).
The second screen only appears for a state code and defines the data necessary to calculate the worker's compensation premium, as may be shown on the Worker's Compensation Report (accessible from the Employee Reports application). Since worker's compensation regulations vary from state to state, the scheme used here is a fairly general one, which should handle most state's requirements. However, it is conceivable that some minor programming modifications may be necessary to handle particular states. See the section of the Package Overview entitled Worker's Compensation for complete details of how worker's compensation is handled.
The labor and industry code section in this manual should also be considered as an alternative to the general approach used in this section.
Third And Fourth Screens
These screens appear for both a state code and city code. They are used to define a method and a table for calculating state withholding tax or city withholding tax for a given State or City Tax code.
Any particular State or City Tax code may have up to 36 different tables associated with it (limited only by the range of values that can be entered for the one‑character Table Id). In practice, no state or city will have more than three such tables in order to cover all possible situations.
Screen 3 defines the method of calculation for the entered Table ID, as well as several parameters needed for this calculation.
Screen 4 defines a single, annual, table for this Table Id. The table has the same format as the Federal Withholding Tables entered in Payroll Setup, except that it allows for 16 entries in the table instead of 8. It is an annual table, just as in the federal case, and is obtained from the latest State Tax Circular or City Tax Circular for that state or city.
The calculation methods available through the scheme used here are very flexible and should adequately handle all states and cities, with very few exceptions. For examples of how to use these tables for various states, as well as more details on the calculation method used see the Package Overview section entitled State and City Tax Calculations.
Select State/City Tax Code File from the pull down PR Maintenance window. The following screen will then be displayed:
State/City Tax Code File Entry Screen
The following options are available:
- Select the desired mode from the State/City Tax Code File menu bar
- Enter the data requested on the screen
- The worker's compensation screen is only displayed for a State Tax code. Also, in add mode, when you are at the point of entering the separate tax tables for the state or city, you will be allowed to enter as many tables as you wish, until the ESC or F10 key is pressed in response to the Table ID field.
- In change and delete modes, the tables will be displayed one after another until all tables have been displayed or until you press the ESC or F10 key for the Table ID.
- The delete mode works somewhat differently than the delete mode on a standard file, since each table is contained in a separate record. After you enter the first two fields on the first screen, the entire first screen entries for that State or City code will be displayed. If this is the code you want, you will be asked OK To Delete This Code?. If you answer Y, then all data associated with this tax code will be deleted, including all tax tables currently on file. If you answer N, you will then be asked, Do You Wish To Delete A Table For This Code? If you answer Y, then the tables for this code will be displayed in order and you will be asked for each: OK To Delete This Table? Answer this question Y or N as desired.
- When List option is selected, the program will print a list of all codes that are on file, including all tables. There is no selection screen for this function.
To return to the menu bar, press the ESC or F10 key. To leave this application, press X for EXIT when positioned at the menu bar.