Set State and Local Deductions for W-2 Processing
Use the State/Local Information tab on PR W-2 Process to specify which states and localities that should be included in W-2 processing.
The grid on this tab
- Defaults the state and local codes that are set up in PR State Information and PR Local Codes, respectively, and
- Displays employee-based deductions that have been flagged to be included as local tax in PR Deductions/Liabilities (Add'l Info tab, Include on W-2s as a Local Tax field).
To specify the states and localities that should be included in W-2 processing:
- The Initialize check box defaults as checked for each state/local code in the grid. Deselect this check box for each state/local code that you want to exclude from W-2 processing.
- Click Initialize State. The system updates each employee record (Employees tab/PR W-2 Employee Edit) with state/local W-2 information.Note: You can only assign deductions to a single state or local code. If multiple states/locals are assigned the same deduction code, and you initialize state/local information, a message displays all of the states associated with the deduction, and warns that a deduction can be assigned only to a single state or local code. You must correct the error before you can continue.
Once you have finished setting information on this tab, you can initialize state/local information and continue on with processing W-2s. For more information, see Process W-2s.