Many counties and cities now assess additional tax rates beyond the rates assessed by the state. The Logos Accounting program now allows for calculating multiple local tax rates. The rates will not be hard coded into the Logos Accounting program, but will need to be manually defined.
For customers in Ohio, Indiana, and Pennsylvania, please refer to the documents specific to your states. These documents can be found at logoscms.com/tips.
Please Note: If your county and local governments do not assess multiple rates, you do not need to change your Tax Liability or employee definitions. To setup your program for only one county or local rate, follow the steps in the Help File > Payroll > Preferences > Tax Liabilities > Local Taxes topic.
To define multiple County and Local Taxes in your Logos Accounting program:
1. Make sure your Logos Accounting program is set to the correct year you wish to work in.
2. Preferences > Payroll > Tax Liabilities – On the Local Taxes tab, define the county name for your organization in the County Name field, and define your Withholding GL account in the County WT field.
3. Click on the Define Rates button on the far right.
4. Select New from the toolbar.
5. Enter the County Name, Resident Rate and Non Resident Rate, as well as the Annual Standard Deduction, Annual Amt per Exemption/Dependent, and then click Save.
a. This entry in the County Name field must exactly match the entry in your employees’ Salary Information tab.
b. You can use the Test Entry section below to submit a test calculation to verify your configuration is correct.
6. Repeat this process for each county that assesses taxes in which you have employees.
7. Follow the same process to define any Local taxes you need to define, but fill out the Local fields instead of the County fields.
8. Preferences > Payroll > Employees – On the Salary Information tab for each employee, enter the employee’s State, County, and Local names.
a. The entries in the County and Local name fields must exactly match the entries you created in the Tax Liabilities > Local Taxes tab > Define Rates button in the steps above.
9. Mark the Calculate Local Tax check box and/or the Calculate County Tax, as applicable to that employee.
a. If an employee does not reside in a county/locality that assesses a tax, do not mark these check boxes.
10. Mark whether the person is a Resident, and set the Marital Status code to the @symbol.
a. If the Resident box is checked, the program will use the Resident Rate you’ve defined in Tax Liabilities.
If the Resident box is not checked, the program will use the Non Resident Rate.
Additional Notes: If the county/local names entered on the employee’s Salary Information tab do not exactly match any county/local names entered in Tax Liabilities > Local Taxes tab > Define Rates button, the program will calculate based upon the default entries on that Tax Liabilities > Local Taxes tab.
If these default entries are left blank, then no tax will be calculated.