Employee Information - State Tax Tab

Access this tab using Maintain>Payroll>Employee Information.

Use this tab to enter the employee's state tax information. The State Withholding Tax boxes change according to the state selected. Other boxes could appear on this tab, depending on the state that is selected.

Note: Do not change the State Tax setup for an existing employee, for whom a paycheck has been entered. Instead, create another Employee ID, using the employee's current information and the new State Tax setup. At year-end a single W-2 form for each Employee ID is created based on the employee's payroll information. The system reports information for only one state, per Employee ID; any additional State Tax information is not calculated or reported. Because you cannot create multiple W-2 forms per Employee ID, nor report more than one state on a single W-2, a separate Employee ID must be created for each W-2 you want to file.

 

State Unemployment Tax State: Select the appropriate state code for State Unemployment Tax. The only states available for selection are the ones that were previously set up using the Maintain>Payroll>State Taxes form.

State Withholding Tax

• State: Select a state code. The only states available for selection are the ones that were previously set up.
• Additional Withholding: Enter the amount for additional withholding to be deducted on a per pay period basis.

Note: Some states utilize the federal W-4 to calculate state withholding. If the employee has completed their W-4 in 2020 and forward and the box on the Federal Taxes tab is unchecked, the state tax calculation may change to accommodate the new rules. Additionally, the Withholding Allowances value may be ignored as allowances have been discontinued for W-4 2020 and forward.

• Filing Status: Select a filing status from the drop-down list.
• Exemptions, Deductions, Allowances for Deductions, Credits: Enter a number of exemptions, deductions, allowances, or credits for State Withholding Tax. The boxes shown here vary according to the tax laws in the state for which information is being entered.
• Spouse SSN: If the withholding tax state is Puerto Rico, enter the social security number of the employee's spouse if the employee is married. The system no longer writes the social security number to the MMREF file; however, Civil Status continues to be set to "M" for married. If you have entered a number in this field and "S" for single, this field is empty.

In order to view the entire Spouse SSN field, you must have been granted Display Sensitive Data rights for Maintain>Payroll>Employee Information in the active organization. These rights are granted by the Administrator using Security>Set Up Organization Menus form. Otherwise, only the last four digits of the Spouse Social Security Number displays.