Sage 100

Today's question that I am hoping someone else has functionally solved... ""Have you ever come across an employee who is working in one state (Indiana) but resides in another (Michigan) these states have a reciprocal agreement, so the employee does not have to pay state withholding to Indiana but is still required to pay Local taxes to Indiana I've been able to accommodate this in QuickBooks, but I don't see any way to be able to do this in Sage Withholding taxes from one state, but withholding the local taxes from a different state Can this be done?"" Currently on Sage 100 2014 but can be upgraded.

We are in northern Indiana, I'll see if our payroll Guru has run into that before. She is tied up so it might be a little while.

That would be spectacular! Thank you.

The state code on the payroll line controls the taxes. So if you setup an earnings code to use in these cases where the state withholding box is not checked, but the local taxes box is checked it will on the Indiana line with that earnings code calculate local Indiana taxes only. Does Michigan have state withholding and do they have to pay that on those earnings though? The Payroll 2.0 release in version 2018 is going to allow a lot more flexibility in this area.

I have LOTS of customers doing this. In Michigan state, setup a local code for the IN county. When they do W2s, they will have to move the numbers into the IN code.

Does the local code go under Michigan and just get moved in Aatrix? Sorry need a little more help on this one to make sure I am clear. Thanks to all for the input.

That is what I was told as well. _I setup (under their ""home state"") the NR code with the appropriate Local Rate. We have to ""adjust"" the W2s to move to Indiana local_ ""Adjust"" means that when you do W-2 forms at year end you move the county amounts manually by zeroing out the Michigan county add it to the Indiana county.

And make sure they realize that this year is the first year that the non-IN local taxes are at the same rate as the IN local taxes.

apparently this question set off a bit of an internal debate about whether or not this would require changes the monthly Indiana WH-1 and the suggestion below came up so I thought I would pass it on. if you think about the codes, when you walk through the wizard in Aatrix, it does have you format the local codes to the correct state/jurisdiction. That might be part of how the WH1 . (and even the W2s) can work o.k