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Tally-Up! Tips and Tricks

Maintaining Tally-Up! Local Taxes


Many folks have asked about managing their Tally-Up! Local tax codes.  Unlike Federal taxes, which are included in the Tally-Up! program, and State taxes, which we maintain for you, the Local tax codes and rates have always been maintained by the user. This is because many users prefer to name and code their localities themselves. 

If you need help in maintaining your Tally-Up! Local taxes, feel free to call us, and we will "walk you through it." If you want to do it yourself, here is a detailed set of instructions you can use.

There are two Tally-Up! menu items used to manage Local taxes. They are found under Housekeeping --> Tax Tables.

The first menu item is "Local Codes and Specifications." This is where your local taxing authorities are defined. Most of the time, this menu item is the only one you will need. 

The second menu item is "Local Tax Rate Tables." This item is not necessary for most localities. This item is covered below.


Adding A New Locality

Let's assume that Guilford County, NC, adopted a new income tax, with a flat rate of 0.5%, based on North Carolina income and using North Carolina's tax rules. Here's how you would set up Tally-Up! to accommodate this new tax.


Defining The Locality

Select Housekeeping --> Tax Tables --> Local Codes and Specifications
from the main Tally-Up! menu. You will see this screen.



This is the Local Tax Code List, where the Local tax sets are created and named.

Click Add to bring up this "Local Tax Names" screen:


The "Code" field:

Enter the code that Tally-Up! will use to identify the tax rate set. The code will appear in the Local tax "SmartList" on the General Information page in the edit screens. The code can be up to fifteen characters long, must be unique, and can be made up of letters and/or numbers. This field must be answered.

Let's enter GUILFORDNC.


The "Name" field:

Enter the name of the taxing authority associated with this locality. This field also must be answered.  It is used in Table Reports and on the Summary Tax Report.

Let's enter Guilford County, NC.


The "Default State" field:

This field is optional. If a Default State code is entered here, the Local ASB (Amount Subject Base) field in the General Information Page of the Edit Screens will default to this state code, if the To-State or From-State field contains the default state before the local code is entered. Even if the default state is loaded, you can change it.

This field can be useful if your company option is set to "Allow From-State Grossups." If, for example, the transferee is moving from Missouri to North Carolina, having NC in this locality's Default State field will automatically ensure that the correct state base is used.


The "SalBase" field:

You may enter either F, S, C or U in this field. "SalBase" is short for Grossup Salary Base. It defines the total income to consider when calculating the tax. Even though this field must be answered, it is important only if the locality has a graduated tax table based on the employee's income.

Nearly all localities use state income for this purpose. S causes this locality's Grossup Salary Base to be calculated using the State Grossup Salary Base, F uses the Federal Grossup Salary Base, C uses a Calculated field, and U uses a User-defined field. Typing C or U will allow you to select from a list of either Calculated or User-defined fields.  F, C and U are used rarely and only under special circumstances.  For example, if the locality levies a tax based on Federal income, you would enter F.

In this example, you would enter S.


The "AmtSb" field:

You may enter either F, S, C or U in this field. "AmtSb" is short for Amount Subject to Grossup. It defines the amount Tally-Up! will consider as taxable for Grossup purposes. Nearly all localities use State tax rules for this purpose. Like the SalBase field above, S uses State tax rules, F uses the Federal tax rules, C uses a Calculated field, and U uses a User-defined field. Typing C or U will let you select from a list of either Calculated or User-defined fields.  F, C and U are used rarely and only under special circumstances.

If, for instance, the locality exempts some income from taxes, you would have to create a Calculated field specifying the local rules, enter C, and select the Calculated field from this list.

Again, for our example, you would enter S.


The "Table" and "FltRate" fields:

Use these fields to tell Tally-Up! what rate to use to calculate the correct tax for this locality. You will use either the "Table" or the "FltRate" field, but never both.

Most localities tax at a flat rate, regardless of income. However, some use tax tables that vary the tax rate based on income. In order for this locality to  calculate a tax, you must either 1) enter a flat rate in the "FltRate" field, or 2) specify one of the 108 possible tax rate tables while the cursor is on the "Table" field.

If this locality uses a flat tax rate, leave the "Table" zero, and type the tax rate in the "FltRate" field as a percent (e.g., 0.5, not 0.005).

If this locality uses tax tables, you must leave the "FltRate" zero and specify one of the 108 possible tax rate tables in the "Table" field, and ensure that the table is properly loaded through Housekeeping's "Local Tax Rate Tables" option. To select a Local Rate table, you may either enter a number from 1 to 108, or you may double-click or type ? to select from the tables on file.

For our example, we would enter 0.50 in the "FltRate" field.

Now, the "Local Tax Names" screen should look like this:


When all fields have been filled, click the OK button to save the data and bring the Local Tax Code List back.



Adding A New Local Tax Table.


As mentioned previously, most localities tax at a flat rate, regardless of income. However, some use tax tables that vary the tax rate based on income. This step is necessary only if the locality uses tax tables.

Let's assume that our example Guilford County, NC, decided that instead of a flat rate, the tax rate should be indexed based on the taxpayer's income. They decide that people with annual incomes under $10,000 would pay no tax, but all others would pay 0.5%. In that case, we would need to create a table and associate Guilford County, NC with it.

Here's how:

Select Housekeeping --> Tax Tables --> Local Tax Rate Tables
from the main Tally-Up! menu. You will see this screen:

The left half of this screen has 108 numbered dots. The numbers will be in brackets (i.e., [1]) if the table is being used by one or more localities. Also, if the table is being used, the localities using it will appear at the lower-right corner when the dot is clicked.

Note that, although it is not recommended, more than one locality can use the same table, if the table brackets and rates are exactly identical. The reason we don't recommend it is that if one locality changes its rules, it is easy to forget that the table is used by another locality, and you can unintentionally change both localities' rules.

Since we are adding a new table, we need to select an unused table by clicking a dot with no brackets around the number.

Click the Edit button. The screen will change to look like this:



Our example will need two brackets; one from $0 to $10,000 with no taxes, and one from $10,001 and higher with a 0.5% tax rate.

The "Bracket Low" fields are loaded automatically and cannot be changed.

At this point, the cursor will be on the top "Bracket Low" field.

  a. Tab to the "Bracket High" column and type 10000
  b. Tab again to the "Percent" column and type 0.0
  c. Tab again to the "Bracket High" column and type 99999999
  d. Tab again to the "Percent" column and type 0.05

Now the table should look like this:

Click the Save button and confirm the save.

You have created the local table. Note the table number, click the Close button and go back to "Local Codes and Specifications."  Find the locality in the list, and either double-click the line or click the Edit button to bring up the "Local Tax Names" window.

Either:

Change the "FltRate" field to zero, and type the number of the table you just created in the "Table" field.

or

Double-click the "Table" field, and select the table from the window that appears. The selected table number will be loaded in the "Table" field and the "FltRate" field will be set to zero automatically.

That's it.  Give it a try. If you have any questions, just contact us

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