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MASSACHUSETTS STATE TAX CALCULATION#

State Tax Calculation - General Set Up#

Please refer to the US Federal Tax Calculation document's 'General Set Up' section for all set up requirements.

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

Massachusetts State Tax Calculation#

On IPUTR, there is a list of applicable taxes to be calculated for State of Massachusetts:
25-000-0000-SIT-000Massachusetts State Tax
25-000-0000-ER_SUTA-000Massachusetts State Unemployment Tax
25-000-0000-ER_SUTA_SC-018Massachusetts Workforce Training Fund
25-000-0000-ER_UHI-000Massachusetts Unemployment Health Insurance

MA – 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.
  • When generating the default identifier for HEADOFHOUSEHOLD, the IPRLU State Filing Status will be used if this exists, otherwise the Federal Filing Status will be used.
  • If the State / Federal Filing Status = ‘03’ – Head of Household, then HEADOFHOUSEHOLD = ‘TRUE’
Miscellaneous IdentifiersDescription
FULLTIMESTUDENTOptional
Full Time Student, default to ‘FALSE’
HEADOFHOUSEHOLDOptional
Head of Household, default to ‘FALSE’

When IPRLU State/Federal Filing Status = Head of Household, then HEADOFHOUSEHOLD default to ‘TRUE’
PERSONALBLINDNESSOptional
Personal Blindness, default to ‘FALSE’
SPOUSEBLINDNESSOptional
Spouse Blindness, default to ‘FALSE’
TOTALALLOWANCESOptional
Enter the total number of allowances


MA – ER SUTA Rate#

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

There are two options to set up the ER SUTA rate by state:

  1. IPUTR
    • Enter the SUTA ER rate that is given by the government on the Override Tax Rate field.
    • This rate is applicable for the entire company within the State of Massachusetts.
  2. IDGV
    • If there is a specific rate given by the government for a different State Registration #, then enter the rate on IDGV by ‘Reg Type’; this overrides the IPUTR rate.


MA – IPPC / PC Usages#

In order to calculate the following taxes, set up IPPC for these PC Usages:
UsageDescription
7300IA - MA-Health Insurance Tax
7301MA-Workforce Training Tax


MA – Special Taxes#

IPUTR - Employer SUTA Surcharge Tax
  1. Iowa Reserve Fund - The Tax Rate for the Iowa Reserve Fund is set at 0 by the government, therefore this tax is not calculated
  2. Iowa Administrative Surcharge Tax - The Tax Rate is set at 0 by the government, therefore this tax is not calculated
  1. Massachusetts Workforce Training Fund - By default, these taxes will be calculated unless the IPUTR ‘Do Not Calculate’ toggle is checked or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’
  2. Massachusetts Unemployment Health Insurance - By default, these taxes will be calculated unless the IPUTR ‘Do Not Calculate’ toggle is checked or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’
    • The wages that are used to calculate UHI are the same wages that are used for ER SUTA
    • An override percentage or override wage base can be specified, if zero, the built in rate and wage base will be used as specified by the government


MA – Trial Calc Example#

Symmetry Set Up - LA_01.jpg

IPRLU Miscellaneous Tab
MA0002 HEADOFHOUSEHOLD = TRUE
PC 8046 Res SIT Earn= 2490.83
PC 6042 Res SIT= 114.59
PC 8056 Res SSP Earn= 452.88 x 5.3 %
PC 6052 Res Supp Tax= 24.00
PC 6500 MA-Health Insurance Tax= 3250.00 x IPUTR 25-000-0000-ER_UHI-000 Tax Rate 0.00
= 3250.00 x default built in rate (0.0024)
= 7.80
PC 6501 MA-Workforce Training Tax= 3250.00 x IPUTR 25-000-0000-ER_SUTA_SC-018 Tax Rate 0.0006
= 1.95
PC 6703 SUI ER Contr= 3250.00 x IPUTR 25-000-0000-ER_SUTA-000 Override Tax Rate 0.1233
= 400.73

Notes#

Click to create a new notes page

Michigan State Tax Calculation#

On IPUTR, there is a list of applicable taxes to be calculated for State of Michigan:
26-000-0000-SIT-000Michigan State Tax
26-000-0000-ER_SUTA-000Michigan State Unemployment Tax

If UPUTR is run with list of IDTX Jurisdictions, then the following entry may exist:

26-000-1619197-CITY-000Big Rapids City Tax
26-000-619906-CITY-000Albion City Tax
26-000-1617959-CITY-000Detroit City Tax

MI – IPRLU Set Up#

The Miscellaneous Tax Parameters must be set up for the following Miscellaneous Identifiers
TOTALALLOWANCESOptional
Enter the total number of allowances
PREDOMINANT_CITYOptional

This is only used for Multiple Tax Jurisdictions
Note:Resident taxes are computed on ALL state wages, not just the wages earned in the resident city. In addition, if wages are earned in multiple Michigan cities (each having a withholding tax), only the “predominant” city is taxed for nonresident purposes. To indicate the “predominant” city, the “PREDOMINANT_CITY” State Miscellaneous parameter for Michigan needs to be set to the GNIS feature ID of the nonresident city.

e.g. set IPRLU PREDOMINANT_CITY to 1619197 for Big Rapids

In most cases, PREDOMINANT_CITY should not be entered. When this is entered, the Non-Resident tax will be calculated at Non-Resident rate.

MI – ER SUTA Rate#

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

There are two options to set up the ER SUTA rate by state:

  1. IPUTR
    • Enter the SUTA ER rate that is given by the government on the Override Tax Rate field.
    • This rate is applicable for the entire company within the State of Michigan.
  2. IDGV
    • If there is a specific rate given by the government for a different State Registration #, then enter the rate on IDGV by ‘Reg Type’; this overrides the IPUTR rate.


MI – City Taxes#

IPUTR - Employer SUTA Surcharge Tax
  1. Iowa Reserve Fund - The Tax Rate for the Iowa Reserve Fund is set at 0 by the government, therefore this tax is not calculated
  2. Iowa Administrative Surcharge Tax - The Tax Rate is set at 0 by the government, therefore this tax is not calculated

If UPUTR is run with list of IDTX jurisdictions, the following entries will exist with the default City tax rates.

26-000-1619197-CITY-000Big Rapids City Tax
26-000-619906-CITY-000Albion City Tax
26-000-620755-CITY-000 Battle Creek City Tax
26-000-1617959-CITY-000Detroit City Tax

City taxes are calculated by GNIS code, please set up Pay Components for City Tax PC Usages.

MI – Trial Calc Example#

Symmetry Set Up - LA_01.jpg

Work GEO: MI 26-107-1619197 Big Rapids IPRLU Miscellaneous Tab
MA0002 HEADOFHOUSEHOLD = TRUE
PC 8046 Res SIT Earn= 2490.83
PC 6042 Res SIT= 114.59
PC 8056 Res SSP Earn= 452.88 x 5.3 %
PC 6052 Res Supp Tax= 24.00
PC 6500 MA-Health Insurance Tax= 3250.00 x IPUTR 25-000-0000-ER_UHI-000 Tax Rate 0.00
= 3250.00 x default built in rate (0.0024)
= 7.80
PC 6501 MA-Workforce Training Tax= 3250.00 x IPUTR 25-000-0000-ER_SUTA_SC-018 Tax Rate 0.0006
= 1.95
PC 6703 SUI ER Contr= 3250.00 x IPUTR 25-000-0000-ER_SUTA-000 Override Tax Rate 0.1233
= 400.73

PREDOMINANT_CITY = 0 TOTALALLOWANCES = 0

PC 8046 Res SIT Earn = 2183.31 PC 8056 Res SSP Earn = 908.25 PC 6042 Res SIT = 94.97 PC 6052 Res SIT Sup = 39.51

PC 6703 SUI ER Contr = 3403.85 x IPUTR 26-000-0000-ER_SUTA-000 Overridden Rate 0.103 = 350.60 PC 6951 Res CITY Tax = 2183.31 x IPUTR 26-000-1619197-CITY-000 Rate 0.01 = 21.83 PC 6953 Res CITY Sup Tax = 908.25 x IPUTR 26-000-1619197-CITY-000 Rate 0.01 = 9.08

This particular version was published on 26-Nov-2021 10:22 by jmyers.Top