The
tax location code assigned at the employee's Job record defines tax
jurisdictions based upon where the employee works. The Tax Distribution
record contains details for that employee and allows for a percentage
allocation when an employee works in multiple locations that fall within
different jurisdictions (State or Local).
The employee may also have tax jurisdictions based upon residency and these may be different than the work jurisdictions. Both resident and work jurisdictions must also be defined in the Employee Tax Data panel. If an employee does not work in the jurisdiction where they live, the jurisdiction should not be defined at the tax distribution panel. It should be marked as resident at the employee tax data panel.
For Example: Employee lived in Chambersburg, PA and worked in Washington County, MD. Based on local reciprocity rules, taxes should be taken for both localities, but were only coming out for the PA local. Both localities were set up at the employee tax data panel with Chambersburg marked as resident. The Employee Tax Distribution and/or Tax Location were not set up correctly, so the work only jurisdiction was not calculating.
The employee may also have tax jurisdictions based upon residency and these may be different than the work jurisdictions. Both resident and work jurisdictions must also be defined in the Employee Tax Data panel. If an employee does not work in the jurisdiction where they live, the jurisdiction should not be defined at the tax distribution panel. It should be marked as resident at the employee tax data panel.
For Example: Employee lived in Chambersburg, PA and worked in Washington County, MD. Based on local reciprocity rules, taxes should be taken for both localities, but were only coming out for the PA local. Both localities were set up at the employee tax data panel with Chambersburg marked as resident. The Employee Tax Distribution and/or Tax Location were not set up correctly, so the work only jurisdiction was not calculating.
