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Has anyone in the construction world had any issues with reporting multiple city taxes for different municipalities?  For instance….if someone lives in one municipality but works in several others and the taxes calculate by giving the employee a credit. 

 

I can’t see how the credit was given to prove to each municipality that we are deducting the correct amount of tax. What I’m seeing is the total taxable wages for the whole check is showing up but the tax is only for the difference between taxable and the credit. 

Hello,

For those employees who received a tax credit when they live in and work in different municipality.  When the taxes are calculated, the tax amount will be lower, you will not see credit for the tax.  If you use the employee’s taxable wages and multiple by the tax rate for the municipality giving the credit.  The tax amount on the employee’s paycheck should be lower than the calculation.  

I hope this helps.


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