Local Tax Threshold Routine (LTTR)

The Local Tax Threshold Routine enables withholding flat-dollar local tax deductions when the subject gross amount meets or exceeds the defined threshold for a specified threshold period.

The Gross-to-Net (GTN) process determines the subject gross amount using the include/exclude pay category tables. Once the deduction is taken within a threshold period, it will not be taken again for the remainder of that period. The Local Tax Threshold Routine uses the following fields:

  • Amount/Percent 1: Specifies the threshold period. Valid options are:

  • Employee's pay period.

  • Calendar month.

  • Calendar quarter.

  • Calendar year.

  • Amount/Percent 2: Defines the subject gross threshold amount.

Note: This functionality is only available when utilizing the Next Generation Payroll service.