Defining United States tax authorities

Tax authorities determine the tax tables used to calculate tax deductions and the minimum wage used to calculate FLSA overtime, tip credit, and income protected from garnishment.

The Tax Authorities Tax Code must match your tax engine mapping. For more information, see the appropriate tax engine manual and documentation.

Procedure flow: Defining U.S. Tax Authority

Define United States tax authorities

  1. Access US Tax Authority (PR06.1).
  2. Type the name and description of the tax authority in the Tax Authority fields.
    Note: The tax engine tax code you type in this field determines the tax tables the tax engine uses for this tax authority.
  3. Type the tax engine tax code you want to link to the tax authority in the Tax Code field. The code you type in this field must exactly match the code you defined in the tax engine.
  4. Define reporting parameters. Specify this information:
    EIN (Employer Identification Number)

    The tax reporting ID, also known as the employer identification number (EIN). This is used for quarterly and W-2 reporting.

    You can override this number for each process level by clicking the Additional EIN button.

    Employer Account Number

    The employer account number for state unemployment insurance. The employer account number is used for quarterly reporting.

    You can override this number for each process level by using the Additional EIN button.

    W2 Description

    The tax authority description you want to print on the W-2 form created by W-2 Forms (PR297) for state and local taxes.

  5. Define location information. Specify this information:
    State

    The state in which the tax authority is located.

    Reciprocity

    Determines whether or not the state or locality participates in reciprocity.

    County Code

    The county code associated with the location.

    School District Number

    The school district number associated with the location.

  6. Select whether or not this tax authority is only used for garnishments in the Used For Garnishments Only field.
    Note: Additional EINs allow you to use the same tax tables for more than one EIN.
  7. If a specific company, process level, or department uses a different EIN or Employer Account Number than the one you type on this form, click the Additional EIN button and define any additional EINs.
    Note: Minimum wage is verified in the calculation of FLSA overtime and income protected from garnishments.
  8. If your organization calculates FLSA overtime under this tax authority you must click the Minimum Wage button to define minimum wages.
  9. If this a state tax authority that requires additional reporting information you must click the State Reporting button to define the additional information.

Related reports and inquiries

To Use
List tax authorities Tax Authority Listing (PR206)
Related topics