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LOCAL RECIPROCITY#

The Local Reciprocity field in IPRLU/IPRLUS should be used for employees whose local tax calculations need to be overridden. This field should not be populated with a field preference; it should only be used for exceptions.

One exception may be in Ohio where some cities have imposed a local tax for certain zip codes and street addresses only. Canfield and Cincinnati are two examples of this. The GNIS alone is not sufficient for the STE to determine whether city tax should not be calculated for an employee in either of these cities, therefore the system will calculate the tax by default. If the employee happens to live on a street/zip code that is a no-tax area, this would be an exception and therefore the Local Reciprocity field is needed to override the tax calculation.

A discoverer report may be written to list all Ohio employees and their home addresses. Using this list of employees, a user can verify the local taxation using the Ohio Tax Finder website (https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/default_Municipal.aspx) where you can input the employee’s exact address or you can check the City’s web page (http://www.cincinnati-oh.gov/finance/income-taxes/resources-references/street-listings-guide/ for Cincinnati).

After determining the legislated rules for the employee’s location and if the STE tax calculations need to be overridden then the Local Reciprocity can be defined in IPRLUS.

IPRLU Local Reciprocity#

On IPRLU LOCAL Tab, an employee should set up the Local ‘Reciprocity’ if applicable.

IPRLU Local Reciprocity = Calc WORK Tax only

Home: 39-061-1066650, Cincinnati OH School: 3104, Forest Hills LSD
Work: 39-061-1061198, Sharonville OH School: 3116, Princeton CSD

• PC 8120 WCITY Earn $3,313.05
• PC 6900 Work CITY Tax $49.70 ($3313.05 * 1.5% = 49.70 (correct) )

IPRLU Local Reciprocity = Calc RES Tax only

Home: 39-061-1066650, Cincinnati OH School: 3104, Forest Hills LSD
Work: 39-061-1061198, Sharonville OH School: 3116, Princeton CSD

• PC 8130 RCITY Earn $3,313.05
• PC 6951 Res CITY Reg Tax $19.88 ($3313.05 * 2.1% = 69.57 (correct))

Ohio No-Tax City Zone#

In Ohio, when an employee lives in a no-tax zone in Cincinnati and works in Sharonville, by default, this employee is being taxed by both the Resident City tax and Work tax by Symmetry Tax Engine.
Home: 39-061-1066650, Cincinnati OH School: 3104, Forest Hills LSD
Work: 39-061-1061198, Sharonville OH School: 3116, Princeton CSD

The employee is being taxed with Work City tax and Res City tax as follows:

• PC 8120 WCITY Earn $3,313.05
• PC 8130 RCITY Earn $3,313.05
• PC 6900 Work CITY Tax $49.70 ($3313.05 * 1.5% = 49.70)
• PC 6951 Res CITY Reg Tax $19.88 ($3313.05 * 2.1% = 69.57 – 49.70 = 19.88)

If the user wants the employee to be taxed by Res City tax only in this situation, user must set up IPRLU Local Reciprocity.

School Tax Method#

Under normal circumstances, School District Taxes are calculated based on employee’s Resident Jurisdiction. Users do not need to set up IPRLU School Tax Method except to suppress the School Tax calculation.

However, in some situations if user wants to zero out Resident School Tax or Work School Tax after Symmetry calculation, user may do by selecting an override in the School Tax Method field.

IPRLU School Tax Method = Use Default School
Home: 39-037-1066324, Arcanum OH School: 1902, Arcanum-Butler LSD
Work: 39-037-1064333, Ansonia OH School: 1901, Ansonia LSD

• PC 6954 Res School Reg Tax $34.11
• PC 6955 Res School Sup Tax $13.65
• PC 8122 Work School Reg Earns $2274.26
• PC 8125 Work School Sup Earns $909.71
• PC 8132 Res School Reg Earns $2274.26
• PC 8135 Res School Sup Earns $909.71

If users wants to zero out Work School Tax Earnings, then set up IPRLU School Tax Method.

IPRLU School Tax Method = Calc, 0 Work Local

Home: 39-037-1066324, Arcanum OH School: 1902, Arcanum-Butler LSD
Work: 39-037-1064333, Ansonia OH School: 1901, Ansonia LSD

• PC 6954 Res School Reg Tax $34.11
• PC 6955 Res School Sup Tax $13.65
• PC 8132 Res School Reg Earns $2274.26
• PC 8135 Res School Sup Earns $909.71

Note:

• PC 8122 Work School Reg Earn Not stored
• PC 8125 Work School Sup Earn Not stored

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Notes#

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