Note: If you are setting up local taxes for Pennsylvania, see article 28743 DocLink: How do I link my Pennsylvania local taxes in Aatrix?

Add Local Taxes to the W-2 When the Locality has one Tax ID:

1. From the Payroll Tasks menu, select Federal eFile and Reporting.
2. If prompted for new or saved reports, click New report and click Next.
3. Click Link Aatrix Tax Types.
4. In the Link Aatrix Tax Types to PR Tax Rates window, click the asterisk button.
5. Type in a name for the group in the Group ID field.
6. Type a description in the Group Description field.
7. From the State drop-down, choose the state the local is in.
8. Click the Tax Description drop-down. If the local tax you are adding to the W-2 is listed, choose that tax. If the local tax is not listed in the drop-down, choose Local Withholding (the first item on the drop-down).
9. Enter your Local EIN in the Employer ID field.
10. If you chose Local Withholding for the Tax Description, enter the description the locality will use in box 20 of the W-2.
    Note: If the tax was listed in the Tax Description drop-down, this field will not be available and will automatically be added to box 20.
11. In the Specify Tax Rates box, select Display Local Rates.
12. Highlight the tax rate from the Tax IDs listed in the Available Rates list.
13. Click the right arrow button to add it to the Selected Rates to be included in this Aatrix tax group.
14. Click Save.
15. Repeat the steps above for each locality you wish to include on the W-2

Add Local Taxes to the W-2 When the Locality has multiple Tax IDs:

1. From the Payroll Tasks menu, select Federal eFile and Reporting.
2. If prompted for new or saved reports, click New report and click Next.
3. Click Link Aatrix Tax Types.
4. In the Link Aatrix Tax Types to PR Tax Rates window, click the asterisk button.
5. Type in a name for the group in the Group ID field.
6. Type a description in the Group Description field.
7. From the State dropdown, choose the state the local is in.
8. Click the Tax Description drop-down. If the local tax you are adding to the W-2 is listed, choose that tax. If the local tax is not listed in the drop-down, choose Local Withholding (the first item on the drop-down).
9. Enter your Local EIN in the Employer ID field.
10. If you chose Local Withholding for the Tax Description, enter the description the locality will use in box 20 of the W-2. If the tax was listed in the Tax Description drop-down, this field will not be available and will automatically be added to box 20.
11. If the subject-to amounts for this locality should be added together for each Tax ID, select Sum All Subject-To Amounts. If the highest subject-to amounts for this locality should be reported on the W-2, select Use Highest Subject-To Amount.
    Note: The Tax amount will always show the sum of all Tax IDs added to the Aatrix tax group.
12. In the Specify Tax Rates section, make sure Display Local Rates is selected.
13. Click each Tax ID for this locality in the Available Rates list and click the right arrow button to add it to Selected Rates list for the tax group.
14. Click Save.
15. Repeat the steps above for each locality you wish to include on the W-2

Review your Aatrix Tax Types Group Setup:

1. In Payroll, choose Tasks, Federal eFile and Reporting.
2. Choose New report and click Next.
3. Click Link Aatrix Tax Types.
4. Click Report to generate a report with the setup information for each Aatrix Group

Learn more: Visit Sage University to watch a video that shows you how to perform this task. Search for the Sage 300 Construction and Real Estate anytime learning subscription titled Year-end Procedures.