Misc tax code
Leave this item blank unless instructed otherwise. This item is reserved for special state tax calculation purposes. It is used in these states:

Alaska—Geographic code.
Each employee’s two-digit Geographic Code must be entered in the Misc tax code field for AK.
The applicable Geographic Code can be found in the Occupational Coding Manual provided by the Alaska Employment Security Tax Division.

Arizona—Withholding percentages of federal taxable earnings.
Employees choose state withholding percentages of federal taxable earnings. Depending on the percentage selected by the employee, enter either 1, 2, 3, 4, 5, 6, or 7 for Misc tax code for Arizona. If the employee selects a withholding percentage of zero, leave Misc tax code blank.
For the latest tax percentages associated with the code, refer to the article "What are the current tax percentages for Arizona state withholding?" linked below.

California—Additional withholding allowances.
Type the number of additional withholding allowances (1 through 10) for Misc tax code for California. This number is used to calculate estimated deductions.
The formula used to calculate exemption amounts is stored for each tax table in Exempt formula. The credit allowance amount is stored for each tax table in Credit allowance.

Georgia—Number of dependent allowances and additional allowances.
Type the number of dependent allowances and additional allowances from form G-4 for Misc tax code.

Louisiana—Number of tax credits that the employee claims.
Type the number of tax credits that the employee claims (from block B on the employee's L-4 form) for Misc tax code for Louisiana.

Massachusetts—Number of blind exemptions the employee claims.
Type the number of blind exemptions the employee claims for Misc tax code for Massachusetts.

Puerto Rico—Number of allowances the employee claims.
Type the number of allowances the employee claims for Misc tax code.

Misc tax code 2
Leave this item blank unless instructed otherwise for quarterly reporting information in a particular state. This item is reserved for special state tax calculation purposes. It is used in these states:

Alaska—Occupational code.
Each employee’s Occupational Code must be entered in the Misc tax code 2 field for AK.
The applicable Occupational Code can be found in the Occupational Coding Manual provided by the Alaska Employment Security Tax Division.

California—Wage plan code.
If you are reporting different wage types for some employees, the wage code for those employees must be entered in the first position of Misc tax code 2 for California. For detailed information about wage types, please refer to the DE 9C documentation issued by the State of California.

Indiana—Location numbers for eFile reporting.
If your company has location numbers, they must be entered for each employee on the Employee state record in Misc tax code 2. This information is used in State eFile and Reporting.

Michigan—Family employment code.
If an employee is engaged in family employment as defined by the Michigan Employment Security Commission, enter an "F" in the first position of Misc tax code 2 for Michigan. An "F" will print in the status column on the quarterly report.

Minnesota—Officer code.
If you are reporting quarterly wages for an employee who is a corporate officer, owns or controls a portion of the corporation, or is the spouse, parent, or minor child of a partner or of a worker who owns or controls a portion of the corporation, enter the letter "O" (not a zero) in the first position of Misc Tax Code 2 for each applicable employee. An "X" will then print in Item 13 (CD) on the quarterly report, and a "Y" will print in the appropriate location in the electronic file.

Missouri—Employees hired on a trial basis code.
For employees hired on a trial basis and employed no longer than 28 consecutive calendar days, enter 1 in the first position of Misc tax code 2 for Missouri.  Otherwise, leave Misc tax code 2 blank. Make certain you've entered a termination date in the Employee Setup window (Misc Info tab) for any temporary workers you no longer employ.

North Carolina—Seasonal employees code.
For each employee who is considered a seasonal employee by the state of North Carolina, enter a "1" in the Misc tax code 2 for North Carolina.

Puerto Rico—Special deduction for certain individuals.
Type 1 for Misc tax code 2 if the employee claims the special deduction for certain individuals.

South Carolina—Officer code.
If you are reporting quarterly wages for an employee who is a corporate officer, owns or controls a portion of the corporation, or is the spouse, parent, or minor child of a partner or of a worker who owns or controls a portion of the corporation, enter the letter "O" (not a zero) in the first (leftmost) character of Misc Tax Code 2 for each applicable employee.  A "1" will print in the appropriate location in the eFile.

Wyoming—Officer and wage type.
Before printing the quarterly report or generating an eFile, enter the appropriate Workers' Compensation and Unemployment Insurance coverage type in the first position of Misc Tax Code 2 for each employee.
B = Employee is covered by Unemployment insurance and Workers' Compensation.
U = Employee is covered by Unemployment Insurance only.
W = Employee is covered by Workers' Compensation only.

If you are reporting quarterly wages for an employee who is a corporate officer, enter one of the following codes in the second position of Misc Tax Code 2 for each applicable employee.

P = President
S = Secretary
T = Treasurer
O = Other

Misc tax code 3
Leave this item blank unless you are instructed otherwise for quarterly reporting information in a particular state. This item is reserved for special state tax calculation purposes. It is used in these states:

Arizona—UI approved branch number.
If your company has multiple UI approved branch numbers, enter the branch number where each employee works in the Misc tax code 3 field for Arizona. This code is used for eFiling.

California—Branch code.
If you are a branch coded employer and you include employees for more than one branch in the same Payroll master file, the branch for each employee must be entered in Misc tax code 3 on the Employee state record for California. If only one branch is included in each master file, the branch code does not need to be entered on the Employee state record.

New York—If an employee was a resident of New York state for part of the year but is not a resident at the time of generating the quarterly report for 4th quarter, enter NY in Misc tax code 3 on the employee state record for NY.

Ohio—Branch code.
If your company has multiple plant or worksite codes, enter the employee worksite code in Misc tax code 3 for Ohio. This code is used for eFiling.

Puerto Rico—Additional veterans personal exemption.
Type 1 for Misc tax code 3 if the employee claims the additional veterans personal exemption.