City income tax not deducted if employee works in another city/state

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Posted on by Community Member

Hi there,

Someone who lives in Kansas City, MO is subject to a 1% Kansas City local earning tax even if he works in another state. AX doesn't automatically deduct that tax at the pay statement level; we have to do it manually. Here is the configuration:

Employee Tax Regions: MO – Kansas City, KS – Lenexa.
Resident of: MO – Kansas City
Works in (default tax region): KS- Lenexa

Does anyone have a similar problem?

Thanks,
St,

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Community Member on at

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I would pursue this with a support ticket based on what you are saying. Normally the tax region defined on the earning statement lines is what drives the taxability in conjunction with the worker tax regions and residency setup. Your setup seems to be correct and it may be an issue in the underlying tax engine that needs to be investigated.

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