Using a Payroll Tax Correspondence File

Payroll system tax codes are proprietary codes used by some payroll tax applications to represent specific jurisdictions or combinations of jurisdictions. If you have licensed this option, you can use a payroll tax correspondence (PTC) file to determine the payroll system tax codes for a given address.

To use a payroll system tax code database, customize the PTC file and then install the file.

  1. Customize the PTC file.

    After you receive your initial PTC file, modify it using a text editor of your choice. Specifically, you need to modify the following:

    • Description—A meaningful description of the code that represents business rules within your organization.
    • Flags—Flags indicate the payroll codes you want Assign GeoTAX Info to return. Possible flag values are:
    • N—No, do not return this payroll tax code. Continue searching the PTC file for other matching records. A blank flag has the same effect as "N".
    • D—Done. Return this payroll system tax code and stop searching the PTC file for other matching records.
    • Any other value—Any other value indicates to return the code. Typically, the letter Y (for "yes") is used. Use other flags if you like. For example, if there is an area with two codes, one for a work location and the other for the worker's residence, you could use flags of "W" and "R" so that the output field PTCn.PayrollFlag returned by AssignGeoTAX Info indicates the type of location.

    The following table shows how to use flags.

    Note: Each record in the PTC file can contain up to six payroll system tax codes and their associated descriptions and flags. In the following example, the first three codes are on the first record and the second three are on the second.

    Record

    Description

    Payroll System Tax Code

    Flag

    1

    HARBORCREEK TWP

    123ABC

    D

    HARBOR CREEK SD

    456DEF

    D

    HARBORCREEK TWP (M + SD)

    789GHI

    N

    2

    DAYTON BORO

    592UID

    Y

    ARMSTRONG SD

    143XMA

    Y

    DAYTON BORO (M + SD)

    592JKT

    N

    In this example, the first record in the PTC file contains tax codes for a municipality called Harbor Creek Township and a school district called Harbor Creek School District. There is a separate code that represents points that are in both the Harbor Creek Township and the Harbor Creek School District. The second record in the PTC file contains codes for Dayton, a school district called Armstrong, and points located in both Dayton and the Armstrong School District.

    This example returns the payroll system tax codes for the individual taxing jurisdictions for a given address, not the codes that represent the combined jurisdictions.

    For addresses located in both the Harbor Creek Township and Harbor Creek School District, AssignGeoTAXInfo returns the following:

    • PTC1.PayrollDescription=HARBORCREEK TWP
    • PTC1.PayrollCode=123ABC
    • PTC1.PayrollFlag=D
    • PTC2.PayrollDescription=HARBOR CREEK SD
    • PTC2.PayrollCode=456DEF
    • PTC2.PayrollFlag=D

    For addresses located in both Dayton and the Armstrong School District, AssignGeoTAXInfo returns the following:

    • PTC1.PayrollDescription=DAYTON BORO
    • PTC1.PayrollCode=592UID
    • PTC1.PayrollFlag=Y
    • PTC2.PayrollDescription=ARMSTRONG SD
    • PTC2.PayrollCode=143XMA
    • PTC2.PayrollFlag=Y
    • For addresses located in just Dayton but not the Armstrong School District, AssignGeoTAXInfo returns the code 592UID and its associated flag and description. For addresses located in just the Armstrong School District but not Dayton, AssignGeoTAXInfo returns the code 143XMA and its associated flag and description.
    Note: For a listing of output fields returned for payroll system tax codes, see Payroll System Tax Code.

    The following table describes the PTC file layout.

    Position

    Length

    Name

    1

    9

    (required) Key Value. Lookup key into the file. Must be one of the following.

    • 5 character jurisdiction ID from the Pay.txb boundary file. This file contains polygons for special areas, such as school districts.
    • 9 character GNIS code.
    • 5 character county key made up of the State and County FIPS codes.
    • 2 character State FIPS code.

    10

    2

    (optional) State

    12

    30

    (optional) County

    The payroll code and payroll description fields are paired. Each pair has a corresponding flag field. The flag field determines if GeoTAX returns data for the corresponding payroll code and description fields. GeoTAX does not return the fields if the flag is N or blank. This lets you create meaningful flags based on your business rules.

    42

    15

    Payroll code 1

    57

    40

    Payroll description 1

    97

    15

    Payroll code 2

    112

    40

    Payroll description 2

    152

    15

    Payroll code 3

    167

    40

    Payroll description 3

    207

    15

    Payroll code 4

    222

    40

    Payroll description 4

    262

    15

    Payroll code 5

    277

    40

    Payroll description 5

    317

    15

    Payroll code 6

    332

    40

    Payroll description 6

    372

    1

    Flag 1

    373

    1

    Flag 2

    374

    1

    Flag 3

    375

    1

    Flag 4

    376

    1

    Flag 5

    377

    1

    Flag 6

  2. Install the PTC file. For instructions on installing the PTC file, see the Spectrum Technology Platform Installation Guide

PTC file updates are provided at intervals defined in your contract. When you receive the PTC update files, enter flags for the modified records and then run Spectrum Enterprise Tax database load utility to merge the updated PTC file with your existing file. For instructions, see "Installing Payroll Tax Correspondence Files" in the Spectrum Technology Platform Installation Guide. This process maintains the existing user-defined flags you have already associated with the PTC data.