Finding Applicable Taxes
Part 2 of 3
Now that we have location codes corresponding to Olivia's home and work addresses, we can find the taxes that will potentially apply for this payroll.
We're going to be making a single request ("LocationTaxRequest") to the locationTax endpoint:
https://ste.symmetry.com/ste-hosted/v1/locationTax
This request will use the following three full location codes ("locationCodeFull") that we determined in the previous step:
"STATE:00-CNTY:000-CITY:0000": The location code used for all federal taxes
"STATE:04-CNTY:013-CITY:11029": The location code for Astrid's work address in Arizona
"STATE:04-CNTY:013-CITY:12233": The location code for Astrid's home address in Arizona
While you could make a separate request for each location code, you would then have to account for any repeated taxes in your own system. For example, both the home and work location codes will return the Arizona State Tax, but you wouldn't actually want to set it up twice!
So instead, we'll be sending all three location codes as separate objects within a single request. That way the engine will consolidate duplicate taxes where possible.
LocationTaxRequest
The following request will return all potentially applicable taxes based on the three location codes listed above:
{
"LocationTaxRequest": {
"taxReferenceFull": [
{
"locationCode": "00-000-0000",
"locationCodeFull": "STATE:00-CNTY:000-CITY:0000",
"payDate": "2024-01-13"
},
{
"locationCode": "04-013-12233",
"locationCodeFull": "STATE:04-CNTY:013-CITY:11029",
"payDate": "2024-01-13"
},
{
"locationCode": "04-013-11029",
"locationCodeFull": "STATE:04-CNTY:013-CITY:12233",
"payDate": "2024-01-13"
}
]
}
}
LocationTaxResponse
After we send that request, we'll get the following lengthy response back from the STE:
{
"LocationTaxResponse": {
"taxItemFull": [
{
"taxEffectiveDate": "2024-01-01",
"taxInstallationDate": "2023-10-19",
"uniqueTaxID": "00-000-0000-ER_FICA-000",
"stateName": "Federal Tax",
"isResident": true,
"credit": 0,
"stateAbbreviation": "FED",
"isEmployerTax": true,
"wageBase": 168600,
"description": "Employer FICA Tax",
"taxIDSuffix": "000",
"stateCode": "00",
"creditLimit": 0,
"taxType": "ER_FICA",
"taxLimitPeriod": "Annually",
"rateType": "percentage",
"rate": 0.062,
"taxLimit": 10453.2,
"nonResRate": 0.062
},
{
"taxEffectiveDate": "2011-07-01",
"taxInstallationDate": "2011-07-01",
"uniqueTaxID": "00-000-0000-ER_FUTA-000",
"stateName": "Federal Tax",
"isResident": true,
"credit": 0,
"stateAbbreviation": "FED",
"isEmployerTax": true,
"wageBase": 7000,
"description": "Federal Unemployment Tax",
"taxIDSuffix": "000",
"stateCode": "00",
"creditLimit": 0,
"taxType": "ER_FUTA",
"taxLimitPeriod": "None",
"rateType": "percentage",
"rate": 0.06,
"taxLimit": 0,
"nonResRate": 0.06
},
{
"taxEffectiveDate": "1900-01-01",
"taxInstallationDate": "1900-01-01",
"uniqueTaxID": "00-000-0000-ER_MEDI-000",
"stateName": "Federal Tax",
"isResident": true,
"credit": 0,
"stateAbbreviation": "FED",
"isEmployerTax": true,
"wageBase": 0,
"description": "Employer Medicare Tax",
"taxIDSuffix": "000",
"stateCode": "00",
"creditLimit": 0,
"taxType": "ER_MEDI",
"taxLimitPeriod": "None",
"rateType": "percentage",
"rate": 0.0145,
"taxLimit": 0,
"nonResRate": 0.0145
},
{
"taxEffectiveDate": "2024-01-01",
"taxInstallationDate": "2023-10-19",
"uniqueTaxID": "00-000-0000-FICA-000",
"stateName": "Federal Tax",
"isResident": true,
"credit": 0,
"stateAbbreviation": "FED",
"isEmployerTax": false,
"wageBase": 168600,
"description": "FICA",
"taxIDSuffix": "000",
"stateCode": "00",
"creditLimit": 0,
"taxType": "FICA",
"taxLimitPeriod": "Annually",
"rateType": "percentage",
"rate": 0.062,
"taxLimit": 10453.2,
"nonResRate": 0.062
},
{
"taxEffectiveDate": "1900-01-01",
"taxInstallationDate": "1900-01-01",
"uniqueTaxID": "00-000-0000-FIT-000",
"stateName": "Federal Tax",
"isResident": true,
"credit": 0,
"stateCode": "00",
"jurisdictionData": [
{
"certificateLineNo": "",
"regexDescription": "'TRUE'-using 2020 W4 or 'FALSE'",
"stateCode": "00",
"parameterName": "2020_W4",
"description": "2020 W4",
"defaultValue": "FALSE",
"regexType": "PickList",
"uniqueTaxID": "00-000-0000-FIT-000",
"isOptional": true,
"dataType": "Boolean",
"helpText": "'TRUE' if employee wants to fill 2020_w4 and 'FALSE' if employee wants to fill 2019 form",
"regex": "^(TRUE|FALSE)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "2020-01-01"
},
{
"certificateLineNo": "Form W-4, Step 1 Box (c)",
"regexDescription": "'S'-single or married filing separately, 'M'-married filing jointly or qualifying surviving spouse, 'H'-head of household, or 'NRA'-nonresident alien.",
"stateCode": "00",
"parameterName": "FILINGSTATUS",
"isOptional": false,
"description": "Filing Status",
"defaultValue": "S",
"regexType": "PickList",
"uniqueTaxID": "00-000-0000-FIT-000",
"listValues": "S=Single or Married filing separately, M=Married filing jointly or Qualifying surviving spouse, H=Head of household, NRA=Nonresident Alien",
"dataType": "String",
"helpText": "'S'-single or married filing separately, 'M'-married filing jointly or qualifying surviving spouse, 'H'-head of household, or 'NRA'-nonresident alien.",
"regex": "^(S|M|H|NRA)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "2023-01-01"
},
{
"certificateLineNo": "",
"regexDescription": "The total number of allowances.",
"stateCode": "00",
"parameterName": "TOTALALLOWANCES",
"description": "Total Allowances",
"defaultValue": "0",
"regexType": "SingleValue",
"uniqueTaxID": "00-000-0000-FIT-000",
"isOptional": true,
"dataType": "Integer",
"helpText": "The total number of allowances for STATE tax.",
"regex": "^([0-9]+)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "1900-01-01"
},
{
"certificateLineNo": "Form W-4, Step 2 Box (c)",
"regexDescription": "'TRUE'-has two jobs or 'FALSE'",
"stateCode": "00",
"parameterName": "TWO_JOBS",
"description": "Two Jobs",
"defaultValue": "FALSE",
"regexType": "PickList",
"uniqueTaxID": "00-000-0000-FIT-000",
"isOptional": false,
"dataType": "Boolean",
"helpText": "Set to 'TRUE' if W4 Box 2 (c) is checked.",
"regex": "^(TRUE|FALSE)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "2020-01-01"
},
{
"certificateLineNo": "Form W-4, Step 3",
"regexDescription": "Dependent amount from W4 Step 3",
"stateCode": "00",
"parameterName": "DEPENDENTS_AMT",
"description": "Dependent Amount",
"defaultValue": "0.0",
"regexType": "SingleValue",
"uniqueTaxID": "00-000-0000-FIT-000",
"isOptional": false,
"dataType": "Dollar",
"helpText": "Dependent amount from W4 Step 3",
"regex": "^([0-9]+([.][0-9]{0,2})?)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "2020-01-01"
},
{
"certificateLineNo": "",
"regexDescription": "The most recent amount withheld.",
"stateCode": "00",
"parameterName": "MOST_RECENT_WH",
"description": "Most Recent Withholding Amount",
"defaultValue": "0.0",
"regexType": "SingleValue",
"uniqueTaxID": "00-000-0000-FIT-000",
"isOptional": true,
"dataType": "Dollar",
"helpText": "The most recent amount withheld.",
"regex": "^([0-9]+([.][0-9]{0,2})?)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "1900-01-01"
},
{
"certificateLineNo": "Form W-4P, Step 2 (b) (iii)",
"regexDescription": "Total income from a job or multiple pensions/annuities from W4P Step 2 (b) (iii)",
"stateCode": "00",
"parameterName": "JOB_PENSION_TOTAL",
"description": "Job Pension Total",
"defaultValue": "0.0",
"regexType": "SingleValue",
"uniqueTaxID": "00-000-0000-FIT-000",
"isOptional": true,
"dataType": "Dollar",
"helpText": "Total income from a job or multiple pensions/annuities from W4P Step 2 (b) (iii)",
"regex": "^(-?[0-9]+([.][0-9]{0,2})?)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "2022-01-01"
},
{
"certificateLineNo": "Form W-4, Step 4 Box (a)",
"regexDescription": "Other income from W4 Step 4 (a)",
"stateCode": "00",
"parameterName": "OTHER_INCOME",
"description": "Other Income",
"defaultValue": "0.0",
"regexType": "SingleValue",
"uniqueTaxID": "00-000-0000-FIT-000",
"isOptional": false,
"dataType": "Dollar",
"helpText": "Other income from W4 Step 4 (a)",
"regex": "^([0-9]+([.][0-9]{0,2})?)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "2020-01-01"
},
{
"certificateLineNo": "Form W-4, Step 4 Box (b)",
"regexDescription": "Deductions from W4 Step 4 (b)",
"stateCode": "00",
"parameterName": "DEDUCTIONS",
"description": "Deductions",
"defaultValue": "0.0",
"regexType": "SingleValue",
"uniqueTaxID": "00-000-0000-FIT-000",
"isOptional": false,
"dataType": "Dollar",
"helpText": "Deductions from W4 Step 4 (b)",
"regex": "^([0-9]+([.][0-9]{0,2})?)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "2020-01-01"
},
{
"certificateLineNo": "Exemption amount from Form 8233",
"regexDescription": "Exemption amount from Form 8233",
"stateCode": "00",
"parameterName": "NRA_EXEMPTION_AMT",
"description": "NRA Exemption Amount",
"defaultValue": "0.0",
"regexType": "SingleValue",
"uniqueTaxID": "00-000-0000-FIT-000",
"isOptional": true,
"dataType": "Dollar",
"helpText": "Exemption amount from Form 8233",
"regex": "^([0-9]+([.][0-9]{0,2})?)$",
"stateAbbreviation": "FED",
"taxEffectiveDate": "2020-01-01"
}
],
"wageBase": 0,
"stateAbbreviation": "FED",
"description": "Federal Income Tax",
"taxIDSuffix": "000",
"isEmployerTax": false,
"creditLimit": 0,
"taxType": "FIT",
"taxLimitPeriod": "None",
"rateType": "percentage",
"rate": 0,
"taxLimit": 0,
"nonResRate": 0
},
{
"taxEffectiveDate": "1900-01-01",
"taxInstallationDate": "1900-01-01",
"uniqueTaxID": "00-000-0000-MEDI-000",
"stateName": "Federal Tax",
"isResident": true,
"credit": 0,
"stateAbbreviation": "FED",
"isEmployerTax": false,
"wageBase": 0,
"description": "Medicare",
"taxIDSuffix": "000",
"stateCode": "00",
"creditLimit": 0,
"taxType": "MEDI",
"taxLimitPeriod": "None",
"rateType": "percentage",
"rate": 0.0145,
"taxLimit": 0,
"nonResRate": 0.0145
},
{
"taxEffectiveDate": "2013-01-01",
"taxInstallationDate": "2013-01-01",
"uniqueTaxID": "00-000-0000-MEDI2-000",
"stateName": "Federal Tax",
"isResident": true,
"credit": 0,
"stateAbbreviation": "FED",
"isEmployerTax": false,
"wageBase": 0,
"description": "Additional Medicare",
"taxIDSuffix": "000",
"stateCode": "00",
"creditLimit": 0,
"taxType": "MEDI2",
"taxLimitPeriod": "None",
"rateType": "percentage",
"rate": 0.009,
"taxLimit": 0,
"nonResRate": 0.009
},
{
"stateCode": "04",
"taxInstallationDate": "2022-10-10",
"uniqueTaxID": "04-000-0000-ER_SUTA-000",
"stateName": "Arizona",
"credit": 0,
"stateAbbreviation": "AZ",
"isEmployerTax": true,
"wageBase": 8000,
"description": "Arizona State Unemployment Tax",
"taxIDSuffix": "000",
"taxEffectiveDate": "2023-01-01",
"creditLimit": 0,
"taxType": "ER_SUTA",
"taxLimitPeriod": "None",
"rateType": "percentage",
"nonResRate": 0,
"taxLimit": 0,
"rate": 0
},
{
"taxEffectiveDate": "1900-01-01",
"taxInstallationDate": "1900-01-01",
"uniqueTaxID": "04-000-0000-SIT-000",
"stateName": "Arizona",
"credit": 0,
"stateCode": "04",
"wageBase": 0,
"isEmployerTax": false,
"stateAbbreviation": "AZ",
"description": "Arizona State Tax",
"taxIDSuffix": "000",
"jurisdictionData": [
{
"certificateLineNo": "Form A-4, Box 1 or 2",
"regexDescription": "The percentage of state tax to withhold.",
"stateCode": "04",
"parameterName": "PERCENTSTATE",
"isOptional": false,
"description": "State elected percentage rate",
"defaultValue": "2.0",
"regexType": "PickList",
"uniqueTaxID": "04-000-0000-SIT-000",
"listValues": "0=Zero,0.5=0.5,1.0=1.0,1.5=1.5,2.0=2.0,2.5=2.5,3.0=3.0,3.5=3.5",
"dataType": "Percentage",
"helpText": "The percentage of state tax to withhold.",
"regex": "^(0|0.5|1.0|1.5|2.0|2.5|3.0|3.5)$",
"stateAbbreviation": "AZ",
"taxEffectiveDate": "2023-01-01"
},
{
"certificateLineNo": "Form A-4V, Box 1",
"regexDescription": "'True' or 'False'",
"stateCode": "04",
"parameterName": "OUT_OF_STATE_WITHHOLDING",
"description": "Voluntary withholding for Arizona resident employed outside of Arizona",
"defaultValue": "FALSE",
"regexType": "PickList",
"uniqueTaxID": "04-000-0000-SIT-000",
"isOptional": true,
"dataType": "Boolean",
"helpText": "'True' to withhold Arizona state income tax for wages earned outside of Arizona or 'False' if not.",
"regex": "^(TRUE|FALSE)$",
"stateAbbreviation": "AZ",
"taxEffectiveDate": "1900-01-01"
},
{
"certificateLineNo": "",
"regexDescription": "The most recent amount withheld.",
"stateCode": "04",
"parameterName": "MOST_RECENT_WH",
"description": "Most Recent Withholding Amount",
"defaultValue": "0.0",
"regexType": "SingleValue",
"uniqueTaxID": "04-000-0000-SIT-000",
"isOptional": true,
"dataType": "Dollar",
"helpText": "The most recent amount withheld.",
"regex": "^([0-9]+([.][0-9]{0,2})?)$",
"stateAbbreviation": "AZ",
"taxEffectiveDate": "1900-01-01"
}
],
"creditLimit": 0,
"taxType": "SIT",
"taxLimitPeriod": "None",
"rateType": "percentage",
"nonResRate": 0,
"taxLimit": 0,
"rate": 0
}
],
"errorStatus": {
"errorMessage": "No error",
"errorCode": 0
},
"httpStatusCode": 200,
"transactionStamp": {
"transactionType": "LocationTax",
"schemaVersion": "v1",
"calcDateTime": "2024-03-07T18:28:59Z",
"steVersion": "2024-R3b",
"failedTransactions": 0,
"totalTransactions": 1
}
}
}
Each object within the "taxItemFull" array represents a separate tax. Most of the properties returned with each tax are purely informational, but we'll need to know about the following ones for right now:
Determining what information we need
In order to correctly set up those miscellaneous parameter, we'll first need some info from the tax forms that Olivia filled out when she began her employment:
- When Olivia filled out her federal Form W-4, she selected a filing status of "Single or Married filing separately" in Step 1(c). She did not complete Steps 2 through 4, since they did not apply to her.
- Since Olivia works in Arizona, she also filled out Arizona Form A-4 and selected a withholding percentage of 2.5%.
Some miscellaneous parameters are only used for special scenarios, so before we continue, let's call out the miscellaneous parameters that we won't need to use for this calculation.
- TOTALALLOWANCES is only used when the employee has filled out a pre-2020 Form W-4. Because Olivia started employment in 2023, she filled out a more recent W-4.
- JOB_PENSION_TOTAL is only needed for pension tax calculations, when the employee has filled out a Form W-4P.
- NRA_EXEMPTION_AMT is only used in special nonresident alien withholding situations.
- MOST_RECENT_WH (for both the federal income tax and Arizona state tax) is only used when calculating withholding on bonuses in a certain way. This is just a regular payroll, so we don't need this for now.
We'll want to set all of the other miscellaneous parameters. With the information from Olivia's W-4 and A-4, we know that we need to set the miscellaneous parameters as follows:
- 2020_W4 will be set to
"true"because Olivia did not fill out a pre-2020 federal Form W-4. - FILINGSTATUS will be set to
"S"because Olivia selected "Single or Married filing separately" in Step 1(c). - TWO_JOBS will be set to
"false"because since Olivia did not check the box in Step 2(c). - DEPENDENTS_AMT, OTHER_INCOME, and DEDUCTIONS will all be set to
"0", since Olivia did not complete Step 3 or Step 4. - PERCENTSTATE will be set to
"2.5"to match Olivia's selection on Arizona Form A-4.
In summary, we now have a list of employee taxes to be calculated:
- 00-000-0000-FIT-000 (Federal Income Tax)
- 00-000-0000-FICA-000 (FICA/Social Security)
- 00-000-0000-MEDI-000 (Medicare)
- 00-000-0000-MEDI2-000 (Additional Medicare)
- 04-000-0000-SIT-000 (Arizona State Tax)
We also have a list of miscellaneous parameters that need to be set up in order to get accurate tax withholding amounts.
With all of this info, we can finally move onto calculating the taxes!
Updated 25 days ago
What’s Next
Next we'll calculate payroll taxes and determine Olivia's net pay!
