Browse federal, state and local payroll tax codes.
Local Tax can identify a city, county or other local payroll tax. Not every locality imposes one. Residence, where work is performed and the type of local tax can affect the calculation.
Related spellings covered here: LOCAL TAXES.
How to read this entry
Use the meaning Local income or wage tax alongside the column heading. An earnings amount, an employee deduction and an employer-cost memo can have different effects even when their labels look similar.
Example on a pay statement
A resident-city tax and a workplace tax can appear on the same statement. A credit or reciprocity rule may matter, so two entries do not automatically prove double taxation.
Examples illustrate the checking method. They are not a personal tax calculation or a promise of a particular benefit.
What to check with payroll
Ask for the taxing jurisdiction and the exact tax name. Compare it with local-authority guidance rather than using a generic state income-tax rate.
Compare related entries
Read the federal, state and local payroll tax codes guide to compare the entries in this part of your statement. Use the full pay stub code directory when a second abbreviation is unfamiliar.
Reference and scope
Official guidance on federal, state and local payroll tax codes provides background on the underlying rules. The actual plan, tax year, jurisdiction and payroll record determine how the rules apply.