STATE SUBTASK

Use this subtask to make various choices regarding how a pay type should be treated for each state's income tax when payroll is computed. If a state for which an employee is set up on the Manage Employee Taxes screen is not found here, Costpoint performs the calculation in accordance with the federal tax setup for this pay type.

Assume a pay type is exempt from federal withholding. If you have a state that follows this same rule, you need not set the pay type up here because, if the pay type is not found, Costpoint calculates by the federal rules.

Click to add a new row to the table.

State

Enter, or click to select, the abbreviation for which you want to set up taxability rules. State IDs are validated against the State table.

State Name

The state name is displayed automatically after you have entered the abbreviation for the state.

Income Taxability

Use the drop-down list to select the income taxability code, depending on the state income tax computation for this pay type.

• Fully Taxable — This pay type has no effect on the calculation of income tax.

• Taxable but Not Subject to Withholding — This pay type is taxable when added to gross pay, but withholding is not required.

• Exempt — This pay type is subtracted from gross pay before taxes are computed.

SUTA Taxability

Use the drop-down list to select a SUTA taxability code, depending on the state unemployment tax computation for this pay type.

• Fully Taxable — This pay type has no effect on the calculation of state unemployment wages.

• Exempt — This pay type is subtracted from state unemployment wages before taxes are computed.