Taxing Entity Assignment

In order to support year-end tax processing, Gross-to-Net (GTN)  assigns an employee’s pay and deduction details to a specific taxing entity during each payroll run. Advantage HRM supports the assignment of taxing entities at the site and department level (with NextGen payroll services, this assignment can also be at the employee level). The taxing entity assignment hierarchy is as follows:

• Site level - When the SINGLE TAXING ENTITY Site Specific Parameter (SPAR) is set to True, GTN will assign the taxing entity in the Text Value of the entry to all employees processed in the payroll run.

• Employee level (Note: this level is only available when utilizing the NextGen payroll service) - When the SINGLE TAXING ENTITY SPAR is set to False, GTN will look to the employee assignment records of the employees processed. If there is a taxing entity defined on the employee assignment record, GTN will assign this taxing entity to the employee processed.

• Department level - If there is no taxing entity defined on the employee assignment record, GTN will assign the taxing entity defined on the Extended Department (DEPTX) reference table for the employee’s assigned department.