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General information

Set up local payroll information for clients

You can use the
Local
 screen to add or modify certain information to be used for local tax agents. For each individual tax, you can specify a different withholding ID and deposit schedule to use and also specify whether or not the client has nexus in this locality.
If a client has nexus in a jurisdiction, it means that they have a business connection or a presence in that jurisdiction and are therefore subject to state or local income and sales taxes.
Select
Setup
,
Clients
, the
Payroll Taxes
 tab, then
Local
 in the State section.

Fields & buttons

Local grid:
 The grid contains a list of the local taxes that apply to the selected client. If you want to specify a withholding ID to be used with a tax, enter it in the Withholding ID column. In addition, you can modify the deposit schedule for the agent that corresponds to each tax. If the client has nexus in this locality, you can specify that here by marking the checkbox in the Nexus column.
If a client has
Nexus
 in a jurisdiction, it means that they have a business connection or a presence in that jurisdiction and are therefore subject to state or local income and sales taxes.
If you accessed the screen from the
Payroll Tax Forms
 tab of the
Payroll Consolidation Groups
 screen, you can mark the
Do not consolidate
 checkbox if you don’t want local payroll tax forms to be consolidated with those of other clients in the consolidation group.
Default EIT Tax Collector:
 (Pennsylvania only) The agent that you select here will be the default agent used for any combined earned-income tax items added in the future for this client.
W2 PSD Code:
 (Pennsylvania only) For each work location that an employee has wages or tax amounts associated with it, the PSD code (known as the TCD code) for that work location is reported in Box 20 on all copies of the employee's W-2 forms. The application does the following to determine the PSD code that is used in Box 20.
  • If no selection is made in the
    Default EIT Tax Collector
     field:
    • The
      W2 PSD Code
       field isn't available and ignored.
    • The 6-digit PSD code of the work location that's assigned to the tax item by the state of Pennsylvania, followed by a dash (-) and the 1st 2 digits of that PSD code is used as the PSD code in Box 20.
    This is an example of Local window.
    This is an example of the Form W-2 output.
  • If a selection is made in the
    Default EIT Tax Collector
     field:
    • The
      W2 PSD Code
       field is enabled and allows a 2-digit code to be entered.
    • The six-digit PSD code of the work location that is assigned to the tax item by the state of Pennsylvania, followed by a dash (-) and the 2 digits entered in the W2 PSD Code field is used as the PSD code in Box 20.
    This is an example of the Local window.
    This is an example of the Form W-2 output.

This article applies to:

  • Product: Accounting CS
  • State: All states
  • Subject: Payroll tax forms
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