Create a zero amount formula:

• In Payroll, from the Tools menu, select Formulas.
• Click New.
• Enter "0" and click OK.
• Enter Zero Amount, click OK, and then click Close.

Create a zero formula tax:

• From the Setup menu, select Taxes, Tax Rates.
• Enter a Tax ID for the work state. Note: Use the same naming structure for the ID of the fictitous equivalent tax. They must be of Similar Length for Tax reporting within Aatrix and you would use the same 2 digit state abbreviation. For instance a fictitous equivalent tax ID for a Withholding tax for Florida would be entered as "FLSWH".
• Enter "Dummy [tax name]" in the Description. For example, type "Dummy Florida Withholding."
• Under Tax Level, select State.
• Under Tax Type, select the correct type.
• Under Table Type, select No table.
• Check the Employer Tax check box, if it applies.
• Use List to select the zero amount formula in the Formula field.
• Click Save.

Add the zero formula tax to the correct Tax Group:

• From the Setup menu, select Taxes, Tax Groups.
• Under Tax level, select State.
• In the Tax group field, enter the work state tax group.
• Use List to add the zero amount tax to the table.
• Click Accept table, click Accept, and then click Close.

Set up the reciprocity:

• From the Setup menu, select Taxes, Reciprocity.
• Under Tax level, select State.
• Enter the resident state abbreviation in the Residence box.
• Enter the work state abbreviation in the Work place box.
• Under Tax ID, click List and select the tax for the work state you want to setup the agreement for.
• Under Reciprocal Tax ID, click List and select the resident state tax.
• Under Agree Type, select Replace.
• Click Accept table and then click Close.

NOTE: Sage is not responsible for the improper setup of a Global Reciprocity Agreement. Setup your Global and Employee Reciprocity agreements as per your State Instructions/Agreements. Sage recommends that the ID used for your replacement or fictitious equivalent tax id's must have the same structure. The 2 digit abbreviation of the State the agreement is for, along with the abbreviated type of tax. For example, a fictitious equivalent tax id for Florida withholding would be FLSWH, a fictitious equivalent tax for Florida disability employee tax would be FLSDI.

You would setup a fictitious equivalent tax for each state which is going to be used on a reciprocity agreement.

Do not setup a fictitious equivalent tax outside of this naming convention or structure.