Washington DC Reciprocal

[Former Member]

Hi Friends,

We have an issue, the client has given list of Tax Authorities, EID's and Tax Type 01 under two Tax Companies in Excel Sheet..

They need all states for the two Companies listed to be set up as reciprocal tax for employees who live in those states but work in Washington DC.  Suppose if employee lives in state of CA but work location is DC, they would pay CA state tax only, No DC tax would be taken.

Do I need to maintain list of Tax Authorities & Nexes Indicator under table V_T5UTRC? How to handle this issue?

Could you please provide your valuable suggestions

Thanking you

Ramesh

[Former Member]

For your example where the employee that lives in state of CA but work location is DC

In T5UTRC Under your Tax company and work tax authority DC create and entry for CA and enable nexus indicator (Secondary). This way only CA income tax would be taken. If you set nexus to primary taxes for both states are deducted.

IT0207-> CA

IT0208-> DC

SM31>T5UTRC and for ur tax company and state DC create a new entry as below:-

Rs T. Auth      Start date           Endda           Nexus Ind.

CA                  01/01/2010      12/31/9999      Secondary

[Former Member]

Thanks Kary for your reply and i will apply the same

While do the testing, where do i need to check whether tax deducting or correctly calculating or not?

Do i need to check the following while testing or any?

Under USTAX Function? -- Tax result for payment type Regular payment?

Wages Types /301, /401, /601, 701 and /310, /410, 610, 710.

Please suggest

[Former Member]

Yep you're right under Tax result for payment type Regular payment in USTAX we will see the authority name and the tax deducted by it individually.

In pc_payresult table RT & TAX would show same info as well.

split 02 for above wagetypes would indicate the state in RT