Anytime your company becomes responsible for taxes in new tax jurisdictions, contact your Tax Service representative immediately. Your Tax Service representative can assist you in the registration process by supplying state agency registration forms, contact numbers, and web addresses. Your Tax Service representative will also let you know the specific type of information needed from you to set up the tax code(s) on our system (e.g., rate, deposit frequency, EFT Electronic Funds Transfer codes, etc.)
It is critical that you register with the new agency prior to filing in the jurisdiction because many agencies will not accept deposits and/or filings on an Applied For ID. Once you have registered with the agency, provide your account representative with your assigned ID or a copy of the agency registration form and any other information requested. This will enable us to set up the tax code on your Client Master File and, subsequently, post and deposit liabilities for the new jurisdiction.
You may be required to add a jurisdiction to your Client Master File when:
Employees change their state of residence
Your company opens a facility in a new tax jurisdiction
Your company acquires a new company in a new jurisdiction
Providing the Tax Service with the necessary information to add a jurisdiction and update your Client Master File is an important process. If a payroll is run that includes a new jurisdiction and the Tax Service has not been notified, we will be unable to post and deposit the liability. The tax liability will be placed on hold until the Tax Service is instructed to update your Client Master File, or until the end of the quarter, whichever occurs first. Tax liabilities on hold, and then later deposited, may create a late deposit penalty for your company from the applicable agency.
Refer to the Supported/Non-Supported Taxes table in the Reference Tables chapter for information regarding which taxes are processed by the Tax Service.
Procedures to add a jurisdiction
Complete the following steps to add a tax jurisdiction.
1. Register with the state agency.
For information on how to register with the agency and obtain an Identification Number, refer to the Registering for Federal State, and Local ID Numbers section of this chapter.
2. Determine if any special documentation is needed.
Contact your Tax Service representative to determine the documentation needed. This could include completion of a Power of Attorney or Tax Information Authorization form, Agency ID/Registration form (or proof of the number), and providing EFT access codes.
3. Provide the Tax Service with written instructions to add the jurisdiction.
In your written notification, be sure to include the following information:
Complete jurisdiction name
Tax identification number or copy of your agency registration form
Tax rate, if applicable
Deposit frequency
EFT access code, if applicable
Power of Attorney, if applicable
Local tax jurisdictions also require the following:
Type of tax: Earned Income Tax, School District Tax or Occupational Privilege Tax
County and state
Add tax jurisdiction to the payroll system.
Once the Tax Service has been notified to add a new tax code to your Client Master File, you can add the code and appropriate rates (if applicable) to your payroll system.