Setting Up Additional Local Withholding

An employee's locality for tax purposes is based on their home address, which is entered during the new hire enrollment process (through a New Hire EAN). However, managers can add or edit local withholding information on behalf of their employees, for example for any additional city or locality taxes that affect the employee. You submit a Change Employment Information EAN to make the change.

Notes:

If an employee is subject to a local tax and no local withholding options have been specified, the system will apply the default values (usually Single filing status and zero exemptions).
When you edit a city/locality, you cannot change the city or locality itself. You can change the allowances, overrides, supplemental tax treatment, and any exemption amounts.
To change an employee's primary tax code for their home or work location, see the Related Help Topic Overriding Home/Work Locality Tax Codes.

Note on Completion: After the EAN is approved for completion, it will immediately complete unless:

The employee's FICA Exempt status is changing to Yes.
The employee's last hire date, employment type, pay method, OT override, or any W-4 field is changing or the FICA Exempt status is changing to No, and the current date is during the Processing Period (or after the Pay Period ends if paid in arrears).
An earlier EAN for the same employee is pending.

To check the expected completion date for the EAN, refer to the eAction Notice (EAN) Details page for the EAN. See the Related Help Topic.

To add or edit an employee's local withholding information:

1. On the Menu, click HR Administration > eAction NoticeHR Administration > eAction Notice.

The eAction Notice (EAN) SummaryeAction Notice (EAN) Summary page displays.

2. Click the Create EANCreate EAN button.

The Create New EAN(s)Create New EAN(s) window displays.

3. Select the employee for whom you would like to adjust local withholding in the Employee drop-down box.

4. Select the Change Employment Information EAN from the EAN type selection box and click the Create EANCreate EAN button.

The Change Employment InformationChange Employment Information page for the employee you selected displays in a new window. Scroll down to see the Local Payroll Tax/Withholding InformationLocal Payroll Tax/Withholding Information area.

5. Add or edit the withholding information.

Adding local withholdingAdding local withholding

You can add as many localities as necessary for the employee.

1. Click the Add Local button.

The Add/Edit Local WithholdingAdd/Edit Local Withholding page displays.

2. Select the state and locality tax type from the drop-down boxes.

Depending on the locality or city you select, different fields display.

3. Make the desired selections.

Note: The system applies the local supplemental tax rate to all supplemental checks; however, you can override it for an employee.

4. Click the Save button.

Editing local withholdingEditing local withholding

1. Click the Edit button by the locality or city you want to edit.

The Add/Edit Local WithholdingAdd/Edit Local Withholding page displays. Depending on the state, different fields display.

2. Make the desired selections.

3. Click the Save button.

6. Enter any notes related to the EAN in the EAN Notes text box.

7. If desired, click the Save as DraftSave as Draft button at the top or bottom of the page to keep the requested change in a drafted status so that it may be edited and submitted for completion at a later time.

Note: When an EAN is put in a drafted status, a Draft EAN NoticeDraft EAN Notice with a link to the unsubmitted EAN is provided on the ExponentHR Dashboard.

8. After entering all necessary changes to employment information, click the Submit button to submit the EAN for approval.

Result: The EAN you just submitted is now visible on the eAction Notice (EAN) Summary page. The EAN must be approved by an appropriate person with rights in order for the change to be completed.

Note: If you need multiple managers to review this EAN before you submit it, you may re-route the EAN. See Related Help Topics for more information.