To enter city tax rules for an employee:Specify city tax rules from the City Tax Rules window. With the appropriate county displayed in the County Tax Rules window, click City Tax.
Attention: Ensure that you have set the correct effective date before entering any tax information.
For information about the Edit Inactive check box, see: Viewing Active and Inactive Tax Records
To enter city tax rules for an employee:Select a city.
Note: If you have set up a payroll tax override address that applies to this city in the Address, Location Address, or GREs and other data window, the Residence Tax Override in Effect or Work Tax Override in Effect box will be checked.
If you checked the Working at Home box, the work details are the same as the resident details, and the employee is assumed to be working 100% from their primary address (or tax override address, if there is one) for this assignment. You cannot update this check box here. Change the Working at Home status on the Standard Conditions tab of the Assignment window.
Select a filing status and enter other information from the W-4 that is applicable to this locality.
In the LIT Override region, to override the regular rate used in withholding calculations, enter a percentage in the Rate field. Enter an amount for Oracle Payroll to withhold a fixed amount each period, without performing any local tax calculations.
Check appropriate boxes in the Tax Exemptions block to exempt the employee from these taxes.
Enter the School District code to calculate school district tax for the employee. Currently, this is applicable only to employees resident in Kentucky, Ohio or Pennsylvania. Consult your Vertex, Inc. handbook for further information on school districts and codes.
Check the LIT Exempt from Wage Accumulation box to exempt the employee from the withholding and reporting of city income wages and taxes.
See also: Adjusting Percentage Tax Rules