Localities Supported in Payroll Settings

While you can set up any locality using these steps, the Payroll Settings wizard only creates local income tax fields for the states listed below.

Alabama

Colorado

Delaware

Illinois

Indiana

Kentucky

Michigan

Missouri

New York

Ohio

Oregon

Pennsylvania

If your company is in one of these states, you'll be asked during Payroll Setup if your company collects taxes for localities. If you say yes, the appropriate tax fields will be set up for you.

If you need to create your own payroll formulas for local taxes. Use the format:

Employee-paid taxes: xxLIT YY, where xx equals two-digit postal abbreviation and YY equals payroll tax year.
Employer-paid taxes (if applicable): xxSSA ER YY, where xx equals two-digit postal abbreviation and YY equals payroll tax year.

You would then need to apply the apply the new formula names to the payroll field(s) in Employee Defaults.

You must subscribe to Sage Business Care to use and set up payroll formulas in Sage 50.