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ALABAMA STATE TAX CALCULATION#

State Tax Calculation - General Set Up#

Please refer to document PR_US_Federal_Tax_Calc.doc '€˜General Set Up'€™ section for all set up requirement.

At state level, the following screens should be verified set up for each state:

IPUTR#

This screen is used to:

• view US Tax Rates by state and to enter the Overridden rates and Wage Base.
• suppress some SUTA Surcharge Calculation for some states by checking the '€˜Do not Calculate'€™ toggle

IPUTP #

This screen is used to:

• view US Tax Miscellaneous Parameters by the states that are applicable for IPRLU

IDGV#

• This screen may optionally contain specific Override rates and Wage bases by Government Registration for each Registration from the Pay Header'€™s group
• IDGV overridden amounts take precedence over the IPUTR overridden amounts

IPRLU/IPRULS #

• Each employee must be set up with the applicable Tax Methods
• Miscellaneous Tax Parameters must be set up by the states that need to be paid

UPRLU #

This process audits the US Tax Filing information and generates IPRLU Miscellaneous Tax Parameters information according to IMCT set up

IPPH #

• The Pay Header tab must specify the default Work Jurisdiction and Home Jurisdiction
• In the Pay Lines tab, the Jurisdiction field must specify the Work Jurisdiction of this pay line
• After Trial Calc or UPCALC, the Pay Amounts tab will contain all US Taxation amounts in summary that are used for the calculation of net pay
• The Pay Jurisdiction tab contains the default Work Jurisdiction and Home Jurisdiction
• After Trial Calc or UPCALC, the Pay Jurisdiction tab contains all US Taxation amounts by jurisdiction in detail

Alabama State Tax Calculation#

On IPUTR, there is a list of applicable taxes to be calculated for state of Alabama:

01-000-0000-SIT-000 Alabama State Tax 01-000-0000-ER_SUTA-000 Alabama State Unemployment Tax 01-000-0000-ER_SUTA_SC-001 Alabama Employment Security Assessment

Alabama State may calculate County or City tax depending on the County and City portion of the GNIS code. On IDTX screen, after the list of Tax Jurisdictions are specified for the State of Alabama, users can re-run UPUTR to select Alabama State, and select the list of Jurisdictions for Alabama to generate the following applicable Tax entries for CNTY and CITY tax. These entries are for information purposes only, the taxes are calculated based on GNIS code even if these entries do not exist on IPUTR. The following is an example of County and City tax:

01-087-0000-CNTY-000 Macon County Tax 01-000-123503-CITY-000 Mountain Brook City Tax 3.1 AL – IPRLU Set Up

- The Miscellaneous Tax Parameters must be set up for the following Miscellaneous Identifiers - if these Identifiers do not exist, UPCALC will generate the default entries for the Identifiers

FILINGSTATUS - Mandatory - 'S'-single, 'M'-married, 'MS'-married filing separate, 'H'-head of household, or '0' (the number zero).

DEPENDENTS - Optional, enter the number of dependents

- Under the Local tab, the City and County Tax Methods must be defined in order for the local tax to be calculated.

3.2 AL – ER SUTA Rate

User may bypass ER SUTA on IPUTR with ‘Do not Calculate’ or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’.

There are 2 options to set up ER SUTA Rate by State: (1) IPUTR - enter the SUTA ER Rate that is given by the Government on Override Tax Rate field - this rate is applicable for the entire company for State of Alabama

(2) IDGV - if there is a specific rate given by the government for different State Registration #, then enter on IDGV by ‘Reg Type’, this overrides the IPUTR Rate

3.3 AL – IPPC / PC Usages

IPPC – Set up Pay Components by PC Usages

If user wants to calculate the following taxes, please set up IPPC for these PC Usages:

Usage Description 7110 State SUI AL-Employment Security Tax

3.4 AL – Special Taxes

- by default, the following taxes will be calculated unless IPUTR ‘Do Not Calculate’ Toggle is checked or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’

IPUTR - Employer SUTA Surcharge Tax

(1) Alabama Employment Security Assessment

3.5 AL – Trial Calc Example

Work: AL 01-073-123503 Mountain Brook, Jefferson

IPRLU MISCELLANEOUS Tab AL0001 FILINGSTATUS = S

PC 8046 Res SIT Earn = 2667.70 (SIT Tax for Single FS) = 100.80 PC 8056 Res SSP Earn = 719.86 x 0.05 (2010 SSP Rate from govt) = 35.99

PC 6042 Res SIT = 100.80 PC 6052 Res SIT Sup = 35.99

PC 6703 SUI ER Contr = 3711.85 x IDGV US SUI ER Rate 0.083 = 308.08

PC 6310 AL-Employment Security Tax = 3711.85 x IPUTR ER_SUTA_SC-001 Tax Rate 0.0006 = 2.23

Jefferson County Tax: PC 6850 Res CNTY Tax = 2792.63 x IPUTR 01-073-0000-CNTY-000 Tax Rate 0.0045 = 12.57 PC 6831 RCNTY Sup Tax = 753.57 x IPUTR 01-073-0000-CNTY-000 Tax Rate 0.0045 = 3.39

For Mountain Brook, City Tax is applicable with zero rate, PC 8130 and PC 8131 are stored for RCITY Earn.