Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — ADP Webcast: Local Taxes You May Not Know About (November 2011)
26 slides from Automatic Data Processing's conference presentation, Nov 4, 2011
Slide 1: Local Taxes You May Not Know About
Local Taxes You May Not Know About Alabama, Indiana, Kentucky, Michigan, & Missouri An ADP ® Webcast Friday, November 4, 2011 1 PM Eastern
Slide 2: Housekeeping
Housekeeping This is one of a number of complimentary webinars that ADP offers to finance and HR professionals each year. Today’s webinar will last for 60 minutes, ending at 2 PM Eastern. The last 10 minutes of today’s program have been reserved for Q&A. A PDF copy of today’s slides is avail
Slide 3: Credit
Credit Are you planning to apply for CPE and/or RCH credits for attending today’s webinar? A. CPE Credit Only D. No B. RCH Credit Only E. Not Applicable C. Both CPE & RCH Credits NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for re
Slide 4: Presenter
Presenter Debbie Mathewson, CPP, CTT+ Raymond Ng Senior Learning Specialist Director, Product Management ADP, Inc. ADP TAXServices and MasterTax 4 © Copyright 2011 ADP, Inc.
Slide 5: Agenda
Agenda Local Tax Guidelines Local Tax Calculations Alabama Occupational Taxes Indiana County Income Taxes Kentucky Occupational License Fees Michigan Local Income Taxes Missouri Earnings Taxes Q&A 5 5 © Copyright 2011 ADP, Inc.
Slide 6: General Local Tax Guidelines
General Local Tax Guidelines Most local taxes are based on the work location Some localities impose taxes on residents Generally, employers are required to withhold the worked-in taxes Generally, employers are not required to withhold resident taxes Workbook Page 1 6 © Copyright 2011 ADP, In
Slide 7: Local Tax Calculations
Local Tax Calculations Method 1 Percentage of the employee’s taxable wages Method 2 Same factors as FIT and SIT (Tax Tables) Method 3 Flat dollar amount Method 4 Local Services Tax (Pennsylvania only) Workbook Page 2 7 © Copyright 2011 ADP, Inc.
Slide 8: Alabama Key Points
Alabama Key Points Worked-in taxes (license fees) Employers required to withhold for any tax imposed by the worked-in city or county Workbook Page 3 8 © Copyright 2011 ADP, Inc.
Slide 9: Indiana Key Points
Indiana Key Points Lived-in county tax Collected by the state Employer is responsible for withholding taxes for the county in which the employee lives Resident and non-resident rates Lake County – the only county with no tax Workbook Page 4 9 © Copyright 2011 ADP, Inc.
Slide 10: Polling Question #1
Polling Question #1 Which statement is true about Indiana County Taxes? A. Employers in Indiana must withhold the county tax based on where the employee works and lives B. Employers in Indiana must withhold the county tax from Indiana resident employees based on where they work C. Withholding the
Slide 11: Kentucky Key Points
Kentucky Key Points Worked-in tax (occupational license fees) Employers’ responsibilities – Mandatory to withhold the worked-in tax – Lived-in school tax may also apply Some special situations/exceptions Workbook Page 5 11 © Copyright 2011 ADP, Inc.
Slide 12: Kentucky Counties
Kentucky Counties If a business is located in a city that imposes a tax and that city is located in a county that also imposes a tax, then both taxes must be withheld – Kenton County is particularly sensitive 12 © Copyright 2011 ADP, Inc.
Slide 13: Louisville Metro Area
Louisville Metro Area Louisville is located in Jefferson County and has been merged into the Louisville Metro Area This area has both a resident and a non-resident rate – Resident – Occupational License Fee, Transit Authority, and School Board (2.2%) – Non-resident – Occupational License Fee and
Slide 14: Boone County
Boone County Boone County has both resident and non-resident rates – Resident – Occupational Fee, Mental Health Fee, and Board of Education Fee (1.45% total) – Non-resident – Occupational Fee and Mental Health Fee (.95% total) – Occupational Fee and Mental Health Fee each have own wage limit Workb
Slide 15: Boone County
Boone County Boone County Kenton County Erlanger Florence 1812 Walton Verona 15 © Copyright 2011 ADP, Inc.
Slide 16: Georgetown/Scott County
Georgetown/Scott County Georgetown is a city in Scott County Employers in Georgetown must withhold city, county, and school district tax for residents Employers in Georgetown must withhold city and county tax for non-residents Workbook Page 10 16 © Copyright 2011 ADP, Inc.
Slide 17: Lexington/Fayette
Lexington/Fayette Lexington is a city in Fayette County Occupational License Fee combines city and county tax into one Employers in Lexington/Fayette must also withhold Fayette County Public School District tax from residents Workbook Page 11 17 © Copyright 2011 ADP, Inc.
Slide 18: Polling Question #2
Polling Question #2 Which statement is true about Kentucky locals? A. Resident taxes are always optional B. If a city and county both have their own occupational tax, the employer must withhold both C. The county taxes are optional D. School District taxes are always optional E. Not applicable/Don
Slide 19: Michigan Key Points
Michigan Key Points Worked-in and lived-in taxes Cities allow credits to employees for worked-in and lived-in taxes Employers’ responsibilities – Mandatory to withhold the worked-in tax – Optional to withhold the lived-in tax Workbook Page 12 19 © Copyright 2011 ADP, Inc.
Slide 20: Polling Question #3
Polling Question #3 Which statement is true about Michigan locals? A. The employer is obligated to withhold both worked-in and resident taxes B. If an employee has a tax in the city where they work and a tax in the city where they live, the highest rate would get split between the two cities C. If
Slide 21: Missouri Key Points
Missouri Key Points Worked-in and lived-in tax Employers’ responsibilities – Mandatory to withhold worked-in tax – Optional to withhold lived-in tax Two cities impose taxes – St. Louis – Kansas City St. Louis has an employer-paid payroll expense tax Workbook Page 13 21 © Copyright 2011 ADP,
Slide 22: Polling Question #4
Polling Question #4 True or False? The St. Louis Payroll Expense Tax is paid by employers. A. True B. False C. Not applicable/Don’t know NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for receiving CPE and/or RCH Credit: •Log in fro
Slide 23: Q&A
Q&A 23 © Copyright 2011 ADP, Inc.
Slide 24: Thank You for Joining Us Today
Thank You for Joining Us Today For information on any of the ADP products or services referenced during today’s webinar: – Phone 800-CALL-ADP or visit www.adp.com For a complete listing of ADP webinars and webinar recordings, go to: – adp.com | tools & resources | events | webinars 24 © Copyrigh
Slide 25: Please Tell Us How We're Doing
Please Tell Us How We’re Doing Your input will be used to improve and plan future webinars One survey participant will be randomly drawn to win a $50 Starbucks Gift Card! This webinar and other written or oral statements made from time to time by ADP may contain "forward-looking statements" within t
Slide 26: Thank You for Attending.
Thank You for Attending.
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