This topic explains how the timecard default rules and tax distribution methods affect the behavior of Coins ERP+.
See the details for each rule below.
State Rules
Timecard Default Rule
EMPLOYEE | COSTING | TIMECARD |
The state will default from Default Work state in Employee Maintenance. | If available, the state will default from the job or section on the timecard, otherwise the state will default from the Default Work state in Employee Maintenance. | Does not apply |
Tax Distribution Methods
Method 1
The employee's wages will be based on BOTH the employee's home state from employee maintenance AND the timecard’s state. Withholding tax will be computed at the highest of home or timecard state’s rate. The timecard state will always get their share of withholding tax, and if home tax rate is higher than the timecard tax rate then home will receive any withholding in excess of the timecard state’s withholding.
Example: NY withholding tax on $1000 is $100 and is home state. MA is timecard state and withholding on $1000 is $90. The Tax Summary Report will show both NY and MA with $1000 in wages, and NY will have $10 in withholding, while MA has $90 in withholding.
Method 2
Wages and withholding tax will be based on the employee’s home state only.
Method 3
Wages and withholding tax will be based on the state on each timecard.
Method 4
Both the timecard’s state and the employee’s home state will receive full wages and withholding tax.
Method 5
Wages will be based upon the timecard’s state. Withholding tax will be computed at the highest of home or timecard state’s rate. The timecard state will always get their share of withholding tax, and if home tax rate is higher than the timecard tax rate, then home will receive any withholding in excess of the timecard state’s withholding.
Example: NY withholding tax on $1000 is $100 and is home state. MA is work state and withholding on $1000 is $90. The Tax Summary Report will show only MA with $1000 in wages, and NY will have $10 in withholding, while MA has $90 in withholding.
SUTA Rules
Timecard Default Rule
EMPLOYEE | COSTING | TIMECARD |
The SUTA State will default from SUTA State in Employee Maintenance. | If available, the SUTA State will default from the SUTA State field from the job or section on the timecard, otherwise the SUTA State will default from Employee Maintenance. | SUTA State will default from the State field on the timecard. |
DBL Rules
Timecard Default Rule
EMPLOYEE | COSTING | TIMECARD |
The DBL State will default from DBL State in Employee Maintenance. | If available, the DBL State will default from the State field from the job or section on the timecard, otherwise the DBL State will default from Employee Maintenance. | DBL State will default from the State field on the timecard. |
WC Rules
Timecard Default Rules
EMPLOYEE | COSTING | TIMECARD |
The WC State will default from WC State in Employee Maintenance. | The WC State will default from the section and then the job. If the WC State cannot be found, it will default from the State Details in Employee Maintenance. | The WC State will default from the State field on the timecard. |
The WC Code will default from WC State in Employee Maintenance. | The WC Code will default from the cost code if it is available, otherwise it will default from the section and then the job. If the WC Code cannot be found, it will default from the State Details in Employee Maintenance. | WC Code will default from the State field on the timecard. |
City Rules
Timecard Default Rule
EMPLOYEE | COSTING | TIMECARD |
The city will default from Default Work city in Employee Maintenance. | If available, the city will default from the job or section on the timecard, otherwise the city will default from the Default Work city in Employee Maintenance. | Does not apply |
Tax Distribution Method
Method 1
The employee's wages will be based on BOTH the employee's home city from employee maintenance AND the timecard’s city. Withholding tax will be computed at the highest of home or timecard city’s rate. The timecard city will always get their share of withholding tax, and if home tax rate is higher than the timecard tax rate then home will receive any withholding in excess of the timecard city’s withholding.
Example: Cleveland withholding tax on $1000 is $100 and is home city. Akron is timecard city and withholding on $1000 is $90. The Tax Summary Report will show both Cleveland and Akron with $1000 in wages, and Cleveland will have $10 in withholding, while Akron has $90 in withholding.
Method 2
Wages and withholding tax will be based on the employee’s home city only.
Method 3
Wages and withholding tax will be based on the city on each timecard.
Method 4
Both the timecard’s city and the employee’s home city will receive full wages and withholding tax.
Method 5
Wages will be based upon the timecard’s city. Withholding tax will be computed at the highest of home or timecard city’s rate. The timecard city will always get their share of withholding tax, and if home tax rate is higher than the timecard tax rate, then home will receive any withholding in excess of the timecard city’s withholding.
Example: Cleveland withholding tax on $1000 is $100 and is home city. Akron is work city and withholding on $1000 is $90. The Tax Summary Report will show only Akron with $1000 in wages, and Cleveland will have $10 in withholding, while Akron has $90 in withholding.
Method 6
The employee's wages will be based only on the city locality on the timecard. Withholding tax will be withheld at the highest of home or timecard city locality. The timecard city will always get the full withholding amount, the home city will get $0.
Example: Cleveland withholding tax on $1000 is $100 and is home city locality. Akron is timecard’s city locality and withholding on $1000 is $90. The Tax Summary Report will show only Akron with $1000 in wages, and $100 in withholding, while Cleveland will have $0 for both wages and withholding.
Method 7
The employee's wages will be based on BOTH the employee's home city from employee maintenance AND the timecard’s city. Withholding tax will be computed at the highest of home or timecard city’s rate. The employee's home city will always get their share of withholding tax, and if timecard's tax rate is higher than the home tax rate then the timecard's city will receive any withholding in excess of the timecard city’s withholding.
Example: Aleppo Twp withholding tax on $1000 is $100 and is home city. Braddock Boro is work city and withholding on $1000 is $90. The Tax Summary Report will show both Aleppo Twp and Braddock Boro with $1000 in wages, and Aleppo Twp will have $100 in withholding, while Braddock Boro will have $0 in withholding.
Tax Distribution Method Overrides may be entered in State Tax Authority Configuration. The override rules will apply when both the Home Locality and Timecard Locality are based on the same state.
Example: When an employee lives and works in Ohio, we will want Tax Distribution Method 5 to apply. When the same employee lives in Ohio and works in PA, we will need Tax Distribution Method 7 to apply. In this example, we would set method 7 in the employee file and enter method 5 as the Override value in OH Tax Authority Configuration.
County Rules
Timecard Default Rule
EMPLOYEE | COSTING | TIMECARD |
The county will default from Default Work county in Employee Maintenance. | If available, the county will default from the job or section on the timecard, otherwise the county will default from the Default Work county in Employee Maintenance. | Does not apply |
Tax Distribution Method
Method 1
The employee's wages will be based on BOTH the employee's home county from employee maintenance AND the timecard’s county. Withholding tax will be computed at the highest of home or timecard county’s rate. The timecard county will always get their share of withholding tax, and if home tax rate is higher than the timecard tax rate then home will receive any withholding in excess of the timecard county’s withholding.
Example: Boone County withholding tax on $1000 is $100 and is home county. Kenton County is timecard county and withholding on $1000 is $90. The Tax Summary Report will show both Boone County and Kenton County with $1000 in wages, and Boone County will have $10 in withholding, while Kenton County has $90 in withholding.
Method 2
Wages and withholding tax will be based on the employee’s home county only.
Method 3
Wages and withholding tax will be based on the county on each timecard.
Method 4
Both the timecard’s county and the employee’s home county will receive full wages and withholding tax.
Method 5
Wages will be based upon the timecard’s county. Withholding tax will be computed at the highest of home or timecard county’s rate. The timecard county will always get their share of withholding tax, and if home tax rate is higher than the timecard tax rate, then home will receive any withholding in excess of the timecard county’s withholding.
Example: Boone County withholding tax on $1000 is $100 and is home county. Kenton County is work county and withholding on $1000 is $90. The Tax Summary Report will show only Kenton County with $1000 in wages, and Boone County will have $10 in withholding, while Kenton County has $90 in withholding.
Method 6
The employee's wages will be based only on the county locality on the timecard. Withholding tax will be withheld at the highest of home or timecard county locality. The timecard county will always get the full withholding amount, the home county will get $0.
Example: Boone County withholding tax on $1000 is $100 and is home county locality. Kenton County is timecard’s county locality and withholding on $1000 is $90. The Tax Summary Report will show only Kenton County with $1000 in wages, and $100 in withholding, while Boone County will have $0 for both wages and withholding.
School Rules
Timecard Default Rule
EMPLOYEE | COSTING | TIMECARD |
The school will default from Default Work school in Employee Maintenance. | If available, the school will default from the job or section on the timecard, otherwise the school will default from the Default Work school in Employee Maintenance. | Does not apply |
Tax Distribution Methods
Method 1
The employee's wages will be based on BOTH the employee's home school from employee maintenance AND the timecard’s school. Withholding tax will be computed at the highest of home or timecard school’s rate. The timecard school will always get their share of withholding tax, and if home tax rate is higher than the timecard tax rate then home will receive any withholding in excess of the timecard school’s withholding.
Example: Cleveland withholding tax on $1000 is $100 and is home school. Akron is timecard school and withholding on $1000 is $90. The Tax Summary Report will show both Cleveland and Akron with $1000 in wages, and Cleveland will have $10 in withholding, while Akron has $90 in withholding.
Method 2
Wages and withholding tax will be based on the employee’s home school only.
Method 3
Wages and withholding tax will be based on the school on each timecard.
Method 4
Both the timecard’s school and the employee’s home school will receive full wages and withholding tax.
Method 5
Wages will be based upon the timecard’s school. Withholding tax will be computed at the highest of home or timecard school’s rate. The timecard school will always get their share of withholding tax, and if home tax rate is higher than the timecard tax rate, then home will receive any withholding in excess of the timecard school’s withholding.
Example: Cleveland withholding tax on $1000 is $100 and is home school. Akron is work school and withholding on $1000 is $90. The Tax Summary Report will show only Akron with $1000 in wages, and Cleveland will have $10 in withholding, while Akron has $90 in withholding.
Method 6
The employee's wages will be based only on the school locality on the timecard. Withholding tax will be withheld at the highest of home or timecard school locality. The timecard school will always get the full withholding amount, the home school will get $0.
Example: Cleveland withholding tax on $1000 is $100 and is home school locality. Akron is timecard’s school locality and withholding on $1000 is $90. The Tax Summary Report will show only Akron with $1000 in wages, and $100 in withholding, while Cleveland will have $0 for both wages and withholding.