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 the State/Local Information tab defaults the state and local codes that are set up in PR State Information and PR Local Codes, respectively. In addition, this tab displays employee-based deductions that are 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:

  1. The Initialize checkbox defaults as checked for each state/local code in the grid. Deselect this checkbox for each state/local code that you want to exclude from W-2 processing.
  2. Select 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.