ARIZONA 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 upIPPH #
- 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
Arizona State Tax Calculation#
On IPUTR, there is a list of applicable taxes to be calculated for State of Arizona: 04-000-0000-SIT-000 Arizona State Tax
04-000-0000-ER_SUTA-000 Arizona State Unemployment Tax
04-000-0000-ER_SUTA_SC-003 Arizona Job Training Tax
04-000-0000-ER_SUTA_SC-051 Arizona Special Assessment Tax
AZ – IPUTP Set Up#
On IPUTP, user needs to provide the Default Value to be used for PERCENTSTATE. This Default Value will be used by UPRLU to populate the default value on IPRLU Miscellaneous Tab, otherwise users are required to manually enter the PERCENTSTATE on IPRLU Miscellaneous Tab.
5.2 AZ – IPRLU Set Up
- The Miscellaneous Tax Parameters must be set up for the following Miscellaneous Identifiers
PERCENTSTATE - Mandatory - The percentage of state tax to withhold. - Must be one of these values: 0, 1.3,.1.8, 2.7, 3.6, 4.2, 5.1
IMPORTANT:
If IPRLU PERCENTSTATE is not set up, Arizona State Tax will not be calculated.
5.3 AZ – 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 the Overridden Rate field - this rate is applicable for the entire company for State of Arizona
(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
5.4 AZ – 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 7130 State SUI AZ-Job Training Tax 7131 State SUI AZ-Special Assessment Tax
5.5 AZ – 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) Arizona Job Training Tax
(2) Arizona Special Assessment Tax
5.6 AZ – Trial Calc Example
IPRLU Miscellaneous AZ0001 PERCENTSTATE = 1.8
PC 8046 Res SIT Earn = 1680.55 x 1.8 % = 30.25 PC 6045 Res SIT = 30.25
PC 8056 Res SSP Earn = 873.88 PC 6047 Res Supp Tax = 22.33
PC 6703 SUI ER Contr = 2766.66 x IPUTR 04-000-0000-ER_SUTA-000 Override Tax Rate 0.06 (or further override by IDGV US SUI ER Rate 0.06) = 166.00
PC 6330 AZ-Job Training Tax = 2766.66 x IPUTR ER_SUTA_SC-003 Tax Rate 0.001 = 2.77
PC 6331 AZ-Assessment Tax = 2766.66 x IPUTR ER_SUTA_SC-051 Tax Rate 0.004 = 11.07
