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Local Tax Tables (Edit)

Local ID Configuration #

Overview #

This article explains how to configure and use the Local ID feature in ProPay payroll software. The Local ID is essential for setting up local taxes and ensuring proper tax calculations for employees and employers.

Key Features #

  • Local ID naming
  • Tax rate configuration
  • Wage ceiling setup
  • Withholding allowance amount
  • State and local tax payment options

Configuring Local ID #

Step 1: Enter Local ID Name #

  1. Navigate to the Local ID configuration screen.
  2. In the “Local ID” field, enter a unique name for the local tax.
  3. This name will be used in the Default Locality 1 or 2 box in System Set-Up.

Note: When set as default, new clients will automatically be set up for this tax.

Step 2: Configure Tax Details #

  1. Tax Name: Enter the name of the tax for identification purposes.
  2. Payable To: Enter the exact name of the Local tax agency as it should appear on tax checks.
  3. Tax Rate: Enter the tax rates for:
    • Residents
    • Non-Residents
    • Employer

Step 3: Set Wage Ceiling (if applicable) #

If there’s a wage ceiling for the local tax:

  1. Enter the wage ceiling amount.
  2. When an employee’s Year-to-Date earnings reach this level, additional wages won’t be subject to taxes for the remainder of the year.

Step 4: Configure Withholding Allowance #

If your locality allows for tax-free exemptions:

  1. Enter the annual withholding (W/H) allowance amount in the designated field.

Step 5: State and Local Tax Payment Options #

  1. Check the box “Pay Local Taxes on Same Check With State Taxes” if both state and local taxes are collected by the same agency.
  2. If checked, ProPay will print both State and Local taxes on one check.

Step 6: Tax Deposit Instructions #

  1. Enter any specific instructions for tax deposits in the “Tax Deposit Instructions” field.
  2. This information will be printed on the “check stub” of the Local Tax Check.

Troubleshooting #

Issue: New clients are not automatically set up for the local tax #

  1. Verify that the Local ID is correctly entered in the Default Locality 1 or 2 box in System Set-Up.
  2. If the issue persists, contact ProPay support for assistance.

Issue: Employee not subject to local tax #

  1. Check if the employee is specifically exempt under Employee Add or Change.
  2. Verify that the Local ID is correctly set up and applied to the employee’s profile.

Additional Resources #

For more information on local tax configuration, please refer to the “Local Tax Tables — Add” section in the ProPay help documentation.

Feedback #

We value your input! If you have any suggestions for improving this article or encounter any issues not addressed here, please use our feedback form available in the ProPay help menu or visit our website at https://www.Paysoft.com.