Issue/Symptom/Question
How does PENTA determine which state code to use for state withholding calculations for a specific employee?
What is the hierarchy that PENTA uses to determine which state’s tax rules to use when calculating state withholding for a timecard?
Applies To
PENTA for Windows
Payroll Processing
Employee Payroll Information (Payroll>Employees>Employee Payroll Information)
Job Information (Project Management>Jobs>Job Information)
Work Orders (Service Management>Work Order Information>Work Orders)
Time Entry (Payroll>Time Entry>Time/Equipment/Production Units Entry)
Resolution/Fix/Answer
PENTA establishes the appropriate state code for withholding purposes based on the following payroll hierarchy
State Withholding Hierarchy
- Timecard Override W/H State
- If the timecard is overridden at the point of time entry, the overriding value is what PENTA will use to calculate taxes. (NOTE: Before anything is overridden, the timecards will show whatever the default value is from 2 – 4 below)
- If the timecard is overridden at the point of time entry, the overriding value is what PENTA will use to calculate taxes. (NOTE: Before anything is overridden, the timecards will show whatever the default value is from 2 – 4 below)
- Employee Work Location W/H State
- If the timecard isn’t overridden, then the state code will default from the Employee Payroll information window, specifically, from the ‘Work Row’ as shown below. The work row will take precedence over any state code that have been assigned in the ‘Resident Row', and any state code that has been assigned at the Job level
- If the timecard isn’t overridden, then the state code will default from the Employee Payroll information window, specifically, from the ‘Work Row’ as shown below. The work row will take precedence over any state code that have been assigned in the ‘Resident Row', and any state code that has been assigned at the Job level
- Job SIT State Code; Work Order SIT State Code
- If the timecard hasn’t been overridden, and there was no state code keyed on the 'Work Row' of the employee payroll information window, the next default will come from the job or work order as shown below.
- If the timecard hasn’t been overridden, and there was no state code keyed on the 'Work Row' of the employee payroll information window, the next default will come from the job or work order as shown below.
- Employee Resident W/H State
- If the timecard was not overridden, and there was no state code keyed on the 'Work Row' of the employee payroll information window, and the employee either did not work on a job, or the job had no default state code assigned,, then PENTA will use the default state code from 'Resident Row' within the employee payroll information window
- If the timecard was not overridden, and there was no state code keyed on the 'Work Row' of the employee payroll information window, and the employee either did not work on a job, or the job had no default state code assigned,, then PENTA will use the default state code from 'Resident Row' within the employee payroll information window