Multi-State W-2 Forms
How do I set up a new employee with multi-tax codes to get different state tax information on their W2’s?
You set this up on the Tax Information tab in the PR Employee window. The employee’s number, name, and marital status appear at the top of the window, while the Tax Codes are assigned to the employee on the tab.
Do the following to define tax status:
1. Select the Tax Information tab.
2. For Federal, State1, State2, State3, and Local as applies to this employee, use the Lookup feature to select a Tax Code.
3. Enter the number of Exemptions this employee claims. (The “99” used in this example is for the manual $ entry to be made in the “addition” box.)
4. If this employee pays additional withholding for any reason, enter the amount in the Addition box. Some employees might do this if they have a small business at home, and they want to make sure they pay enough so they don’t end up owing large amounts at tax time, for example. Or perhaps they simply want to make sure they get a big return check.
5. Select the W-2 Information status box that applies to this employee.
Notice the NJ-A is set up normally, but the other NY-S and NY-M (another state tax, and city tax) is set up to manually take out $25 and $50 withholding from his check.
Tax Tables
Payroll allows you to set up tax and withholding tables for federal, state and local taxes. Each of the tax tables is associated with a code. When you assign a tax code to an employee the table associated with that code is used to determine tax amounts for FICA and Medicare federal taxes or the state and local taxes associated with the code.
To define Tax Codes:
1. Select Codes from the Options menu.
2. From the drop-down menu, select Tax Tables. The Payroll Tax Tables window appears.
3. Select the filing status from the drop-down list. Your options are Single, Married or Head of Household. Be aware that Head of Household doesn’t apply to all taxing agencies. Check the actual hard-copy table you are duplicating before choosing this option.
4. Select the check box for the appropriate Tax Type: Federal, State, or Local.
5. Enter a Tax Code. Usually this code specifies either federal, state or local, as well as the filing status. The following example is an acronym for Federal Tax, Single: FTS
6. Enter a description for this tax code. For the example above (FTS), the description might be, Federal Tax Single.
7. In the Tax Number box, enter the Employer Identification Number issued by the appropriate taxing agency.
8. Enter additional information for each Tax Code using the tabs and command button listed below. When you have completed all of the necessary steps, select Save to save the tax table, or Cancel to exit without saving.
If you have employees who worked in more than one state, select the Print Secondary
States check box to print additional W-2s for the employees to submit with their state income tax return for each state.
Kevin
System Trainer
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