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WELCOME TO GMS ACCOUNTING ONLINE HELP
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You are here: Payroll > Payroll Setup > Local Tax
Local Tax
​For those organizations that need to withhold local taxes from their employee’s pay, the local tax jurisdictions and corresponding rates are defined here.  In addition to setting up the withholding, there are various reporting options available, including special reports when multiple local Tax codes are defined.
 
Code: Enter a numeric code up to 3-digits.

  • Note: For PA organizations you can enter 6 digit codes and descriptions as defined by PA Act 32.  These codes can be found at http://www.newpa.com/local-government/tax-information/act32#eit_psd_codes
 
Description: Enter a description for the Local Tax jurisdiction.
 
Rate (%): Enter the percentage to be withheld from local taxable wages. If the rate is one and a half percent, enter 1.5.
 
Active:  Enter True if this Local Tax jurisdiction may be used.  If it is no longer to be used, enter False.
 
Note: For Maryland employees who have Maryland state taxes withheld, you need to enter the appropriate local code under setups and in the employee files. Use the following chart for the Maryland County Codes. However, under setups you cannot have a code listed twice with different descriptions, so the description should include all counties listed. However, when the local tax code setup is printed, it will limit the number of characters to print for the descriptions. Even though the software does not use the rate field for any calculations, you can enter a rate so it isn’t confusing.
 
Note: MD local tax is included with the State tax withholding and will appear under that column on the registers.
Code
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
​18
Counties
Worchester
Talbot
Anne Arundel
Garrett
Cecil, Washington
Charles
Carroll
Wicomico, Queen Anne's, Baltimore City, Somerset
Howard, Montgomery and Prince George
Calvert, St. Mary
Dorchester
Caroline
Baltimore
Allegany
Fredrick
Hartford
Not in use
​Kent
Rate
2.25
2.40
2.81
2.65
3.20
3.03
3.04
3.20
3.20
3.17
2.62
3.20
3.20
3.05
2.96
3.06
3.15
​3.20

NOTE: For Indiana local tax calculation, they require that local taxable wages are equal to gross wages less state deferrals and the number of state dependents. When local taxes are to be calculated, if it finds the state code IN that has a local tax code set up for an employee, it will display the question “What state do you pay local taxes in?” If the state of IN is given, it will then do the special calculation to calculate the IN local taxes.
 
The accepted IN county codes that must be used are as follows:

1 ADAMS
2 ALLEN
3 BARTHOLOMEW
4 BENTON
5 BLACKFORD
6 BOONE
7 BROWN
8 CARROLL
9 CASS
10 CLARK
11 CLAY
12 CLINTON
13 CRAWFORD
14 DAVIESS
15 DEARBORN
16 DECATUR
17 DEKALB
18 DELAWARE
19 DUBOIS
20 ELKHART
21 FAYETTE
22 FLOYD
23 FOUNTAIN
24 FRANKLIN
25 FULTON
26 GIBSON
27 GRANT
28 GREENE
29 HAMILTON
30 HANCOCK
31 HARRISON
32 HENDRICKS
33 HENRY
34 HOWARD
35 HUNTINGTON
36 JACKSON
37 JASPER
38 JAY
39 JEFFERSON
40 JENNINGS
41 JOHNSON
42 KNOX
43 KOSCIUSCO
44 LAGRANGE
45 LAKE
46 LAPORTE
47 LAWRENCE
48 MADISON
49 MARION
50 MARSHALL
51 MARTIN
52 MIAMI
53 MONROE
54 MONTGOMERY
55 MORGAN
56 NEWTON
57 NOBLE
58 OHIO
59 ORANGE
60 OWEN
61 PARKE
​62 PERRY
63 PIKE
64 PORTER
65 POSEY
66 PULASKI
67 PUTNAM
68 RANDOLPH
69 RIPLEY
70 RUSH
71 ST. JOSEPH
72 SCOTT
73 SHELBY
74 SPENCER
75 STARKE
76 STEUBEN
77 SULLIVAN
78 SWITZERLAND
79 TIPPECANOE
80 TIPTON
81 UNION
82 VANDERBURGH
83 VERMILLION
84 VIGO
85 WABASH
86 WARREN
87 WARRICK
88 WASHINGTON
89 WAYNE
90 WELLS
91 WHITE
92 WHITLEY
​
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