Sage Intacct Construction Payroll: Configuring Tax Reciprocity Rules

Setting Up Tax Reciprocities in Sage Intacct Construction Payroll

Managing tax reciprocities in Sage Intacct Construction Payroll is crucial for accurate tax withholdings, particularly for employees working across different states. Here's a guide on how to set this up effectively.

1. Navigating to Tax Reciprocity:

  • Access the Feature:

    • Go to Applications.

    • Select Construction Payroll.

    • Click on Tax Reciprocity.

2. Creating Custom Reciprocity Rules:

  • Creating a New Rule:

    • Click on Create New.

    • Define the effective date.

  • Setting Tax Identifiers:

    • Specify resident tax identifier or tax categories.

    • Example Scenario: If an employee resides in Iowa (for state unemployment) and works in Illinois, set up a rule to withhold Iowa state income tax, not Illinois.

  • Selecting Reciprocity Options:

    • Choose from various options (e.g., Earn Both, Withhold for the Higher Rate).

    • For the example, select Take the Resident Tax Only. This ensures Illinois taxes apply for other areas, but only Iowa state income tax is withheld.

3. Importing Tax Reciprocity Rules:

  • Utilizing Import Function:

    • Use the import feature in the system to add multiple rules simultaneously.

  • Accessing Pre-built Spreadsheet:

    • Go to help.cloudpayrollengine.com.

    • Search for “import tax”.

    • Find and download the file “Import File Tax Reciprocities”.

  • Importing into Sage Intacct:

    • Return to the Tax Reciprocity section.

    • Click Import.

    • Choose Import Rows, update data files, and select the downloaded file.

    • Review and submit the import.

  • Saving Imported Rules:

    • Remember to click Save Records to finalize the import.

    • Note: If rules already exist, an error may occur. For new setups, it should import successfully (e.g., 66 records).

4. Reviewing and Editing Rules:

  • Checking Imported Rules:

    • After import, review all the rules listed under Tax Reciprocities.

  • Customizing as Needed:

    • Edit rules according to your company’s specific scenarios and needs.

Conclusion:

Setting up tax reciprocities in Sage Intacct Construction Payroll ensures correct tax withholding for employees across different states. Utilizing the import feature can significantly streamline this process, saving time and reducing manual errors.

Watch the complete tutorial on YouTube for a detailed walkthrough of each step.