Before You Begin: This functionality is applicable for US employees only. Moreover, some parts of this feature aren’t available by default and must be enabled for your instance by Support. See State Tax Threshold Configuration.
You can manage the thresholds that various US states use to determine when mobile employees are subject to income taxes. This functionality offers the following:
- A screen where you can add and update state income tax thresholds and define which types of earnings each threshold measures.
- An employee property that you can assign to employees to enable Dayforce to apply state income tax thresholds on their earnings.
- A wizard process that allows you to make tax adjustments when employees have met a threshold.
- A payroll audit report that allows you to track how close employees are to meeting various state tax thresholds.
For more information on managing state tax thresholds, see the following topics:
- Overview of Multi-State Tax Thresholds
- Add Eligible Earnings to Earning Groupings
- State Tax Threshold Configuration
- Configuration of Multi-State Threshold Taxation for Eligible Employees
- Wizard for Retroactive State Tax Threshold Adjustments
- Run the Wizard for Retroactive State Tax Threshold Adjustments
- Multi-State Threshold Taxation Status Report
- Update the Threshold Balance for Past Amounts