Resident Codes and Active Taxes by Assignment

Overview

Updated 06/24/2021

In order to troubleshoot tax issues in an efficient manner we have added resident codes to the employee taxes section located in the Employee > Payroll > Tax screen for state and local tax jurisdictions. In addition, if the employee worked in different assignments that created a new set of taxes, you are now able to filter on their assignments and see all the taxes in play that impact taxation.   

Resident Codes

The tax jurisdiction will be check marked, based on if you are a resident or non-resident. For example, the screen shot below shows that I live in Michigan but work in Minnesota. Both withholding taxes must be assigned to me because the tax engine needs to adhere to the taxation rules for multi-state employees. Some states apply a credit from the tax taken on the work state, others require both taxes to calculate, and there are also states that only withhold the non-resident tax. If reciprocity is in play and configured in Avionté, only the resident tax will calculate.

If an employee is to live and work in the same state, you will see both the resident and non-resident tax checked. This is a limitation based on Vertex. Normally we would have showed a resident code of Live and Work.

Taxes by Assignment

When an employee is assigned to multiple work assignments, you can filter by assignment to see which taxes are in play for the employee. Select the Active Assignment and then select the check box for Limit By Assignment, this will reduce all the taxes based on where the employee lives and the particular assignment selected. See the screen shot below: