LE-6217, LE-2263 Added functionality to allow the system to apply resident taxes for bonuses based on a given date. To support this update, the new Enable Resident Taxation Based on Business Date checkbox was added to check templates in Payroll Setup > Check Templates in the United States Taxation section. When this checkbox is selected, Dayforce applies the resident address that was effective on the business date entered with bonus earnings by selecting the new check template in the Quick Entry tab in Payroll > Pay Run Management. The new checkbox is available only if you first select Allow Resident Taxation Based on Business Date in Check Template, located in System Admin > Client Properties > Properties tab, in the Payroll tab, which the system uses to apply a business date to determine resident taxes based on the resident address on the given business date. This enables business dates to relate back to historical employee residence for the purpose of taxation. Important: States with special tax rules based on locations should take caution. For example, Indiana has a specific beginning of the year tax location rule. With the new option selected, the resident address used in the tax calculation for December services (December business date entered with bonus earnings) will use the resident address as of January 1st 2023 based on their tax rules. |