Marianas Protectorate Tax Code

The Commonwealth of the Northern Marianas (MP) requires the calculation of two taxes—Chapter 2 taxes and Chapter 7 taxes. To accommodate these separate taxes, two state tax codes—SWT and SWT2—are created during the calculation process (Activities>Payroll>Calculate Payroll). These state tax codes are only available if you have set up the employee as a resident of MP (Maintain>Payroll>Employee Information).

To view or modify these amounts, select the MP employee using the Activities>Payroll>Review/Modify Calculated Payroll form. On the taxes tab, the Tax Type drop-down list displays "SWT-State Withholding Tax-C2" for Chapter 2 tax and "SWT2-State Withholding Tax-C7" for Chapter 7 tax.

In order to enter manual checks (Activities>Payroll>Enter Manual Checks) and/or set up or adjust entries (Activities>Payroll>Set Up/Adjust Employee Balances), the employee must be established as an MP resident on the Maintain>Payroll>Employee Information>State Tax tab.

For more information, review the documentation for the Maintain>Payroll>State Taxes form.