Tech Note: The Payroll Local Tax Table Maintenance Function and the Additional Tax Code Feature

The AccountMate Payroll (PR) module provides functionality to handle a wide variety of payroll taxation requirements. Automatic payroll processing handles federal taxation and state withholding, employer SUTA, and SDI. However, the many unique combinations of local withholding and reporting requirements require user input so that PR can accommodate each company’s specific needs.

For example, an employee may reside in one state and work in another state, so their wages are subject to taxation in both states. In certain circumstances, the employee may also be subject to both county and city payroll taxes. Article #1310: How to Use the Payroll Local Tax Table Maintenance Function explains how to automate various local tax calculation and reporting requirements.

Requirements placed upon employers by various governmental organizations cause payroll to be one of the more complex accounting functions. Federal requirements are fairly straightforward; however, the large number of states, counties, cities, and municipalities that also have requirements complicates the function. Article #1309: Using the Additional Tax Code Feature provides information about how to use the Additional Tax Code feature to automate various state tax calculation and reporting requirements.