Enter Report Codes for Tax Lines, Withholding

Explanation

Use this activity to enter report codes for tax withholding. These codes enable you to report tax withholdings separately for federal and state purposes. At the state level, you can define codes for each state or other local jurisdiction for which you are withholding taxes. Tax withholding may be required by law for certain supplier payments. In the United States, for example, backup income tax withholding for IRS Form 1099 may be required if the supplier fails to furnish you with his or her taxpayer identification number.

Prerequisites

There are no prerequisites for this activity.

System Effects

As a result of this activity, one or more report codes for tax withholding are defined in the system.

Window

Report Codes for Tax Lines, Withholding

Related Window Descriptions

Report Codes for Tax Lines, Withholding

Procedure

1. Enter the country code.
2. Enter the report code for tax withholding. Also enter an appropriate description.
3. Select the appropriate tax function. This value indicates whether the tax withholding is for federal or state tax.
4. Save your changes.