Local Taxes

Related topics

Setting up employees in multiple states

Remember: this is a default setting. If your employees live in different localities, enter or choose the primary locality that applies to most employees.

Note: You can later modify local setup for individual employees, if needed.

You can either enter a name for the local tax or (in some cases) select from a supplied list of taxes. If there is a drop-down arrow beside the Locality field, then click the arrow and search the list for your locality.

Tax rate: If you enter a new local tax name, then enter the % that you collect for that tax.

Note: If you have to change the rate for a local tax, make sure you do so at the appropriate time--before running payroll for the period after the rate takes effect. The rate change will not apply to previously processed paychecks.