Tax Setup in Talent Profile (Draft)

The Tax Setup feature in BOLD's Talent Profile consolidates all tax-related information in one centralized location, eliminating the need to switch between BOLD and Back Office systems. This consolidation provides recruiters with real-time visibility into tax configurations, improving efficiency and reducing data entry errors.

Before You Begin

Ensure you have the appropriate tax editing permissions configured in your user profile. See the User Permissions section below for details on required access levels.

Quick Reference

Chapters:

• User Permissions
• Accessing Tax Setup
• Tax Details
  • US Federal Taxes
  • State Taxes
  • CA Federal Taxes
  • Provincial Taxes
  • Default Taxes
  • Check Delivery Options
• Tax History
• Talent Tax Setup Audit
• Best Practices & Troubleshooting

User Permissions

Access to Tax Setup features is controlled through user-level permissions. Users typically need multiple permissions to fully manage tax configurations.

Don't have the required permissions? Contact your system administrator to request access based on your role and responsibilities.

Accessing Tax Setup

Follow these steps to access Tax Setup in Talent Profile:

1. Navigate to Talent Profile
2. Select the Tax tab
3. Choose either:
   • Details tab to view and edit tax configurations
   • History tab to view historical tax deductions

Tax Details

The Tax Details tab displays all active tax configurations for the talent. You can add new tax records, edit existing configurations, and manage tax parameters based on your permission level.

US Federal Taxes

The US Federal Tax section manages federal tax withholding information for US-based talent, supporting both current (2020 and later) and legacy (pre-2020) W-4 configurations.

Edit Access Requirements

• Available in integrated environments only
• Requires appropriate edit permissions (see User Permissions)
• Special permissions required for Tax Exempt, Active, and IRS Lock-In fields

Adding US Federal Tax Information

1. Navigate to Tax Setup and select the Details tab
2. Click + Additional Tax
3. Complete the following fields:
   • Select Tax: US = Federal Income Tax (0) (Required)
   • Filing Status: Select appropriate status (Required)
   • Additional Fields: Qualifying Children, Other Income, Deductions, Multiple Jobs, Additional Withholdings (Add WH)
4. Click Save

Editing US Federal Tax Information

1. Navigate to Tax Setup and select the Details tab
2. Click into any field in the Federal Tax row
3. Make changes using dropdowns, text entry, or checkboxes
4. Use the Actions column to confirm or cancel:
   • Blue Checkmark = Save changes
   • Red X = Cancel changes

Success or cancellation messages will display after you confirm or cancel your edits.

Displaying Federal Taxes

Use the Column Selector at the top right to customize which tax parameters are visible in the display.

US Federal Tax Parameters

Not applicable for Canadian talent configurations

Basic Information

Filing Configuration

Withholding Adjustments

Status and Special Conditions

State Taxes

The State Tax section manages state-level income tax withholding, including resident status and county tax details for US-based talent.

Adding State Tax Information

1. Navigate to Tax Setup and select the Details tab
2. Click + Additional Tax
3. Complete the following fields:
   • Select Tax: Choose the state (Required)
   • Filing Status: Select appropriate status (Required)
   • Additional Fields: Exemptions, Dependents, Additional Withholdings (Add WH)
4. Click Save

Editing State Tax Information

1. Navigate to Tax Setup and select the Details tab
2. Click into any field in the State Tax row
3. Make changes using dropdowns, text entry, or checkboxes
4. Use the Actions column to confirm or cancel:
   • Blue Checkmark = Save changes
   • Red X = Cancel changes

Success or cancellation messages will display after you confirm or cancel your edits.

Displaying State Taxes

Use the Column Selector at the top right to customize which tax parameters are visible in the display.

State Tax Parameters

Not applicable for Canadian talent configurations

Basic Information

Filing Configuration

Withholding Adjustments

Residency and Status

Understanding NR Cert (Certificate of Non-Residency)

The NR Cert indicator manages reciprocal tax agreements between states. When a talent lives in one state but works in another state with a reciprocal agreement, they may be exempt from withholding in their work state.

Example: A talent living in Kentucky who works in Indiana will be exempt from Indiana withholding under reciprocity. When the talent selects Kentucky as their resident state during onboarding, the system automatically checks the NR_CERT flag for the work state (Indiana).

Important: The NR_CERT flag is ONLY checked on WORK states, never on resident states.

CA Federal Taxes

The CA Federal Tax section manages Canadian federal tax withholding information based on the TD1 Personal Tax Credit Return.

Edit Access Requirements

• Available in integrated environments only
• Requires appropriate edit permissions (see User Permissions)
• Special permissions required for Tax Exempt and Active fields

Adding CA Federal Tax Information

1. Navigate to Tax Setup and select the Details tab
2. Click + Additional Tax
3. Complete the following fields:
   • Select Tax: CA = Federal Withholding Tax (700000000) (Required)
   • Filing Status: N/A (Required)
   • Additional Fields: Additional Withholdings, Dependents, Exemptions (Not Applicable to Canadian Federal Taxes)
4. Click Save

Editing CA Federal Tax Information

1. Navigate to Tax Setup and select the Details tab
2. Click into any field in the CA Federal Tax row
3. Make changes using text entry or checkboxes
4. Use the Actions column to confirm or cancel:
   • Blue Checkmark = Save changes
   • Red X = Cancel changes

Success or cancellation messages will display after you confirm or cancel your edits.

Displaying CA Federal Taxes

Use the Column Selector at the top right to customize which tax parameters are visible in the display.

CA Federal Tax Parameters

Not applicable for United States talent configurations

Basic Information

Exemption Configuration

Annual Adjustments

Status Fields

Provincial Taxes

The Provincial Tax section manages provincial-level tax withholding for Canadian talent based on the Provincial TD1 Personal Tax Credit Return.

Adding Provincial Tax Information

1. Navigate to Tax Setup and select the Details tab
2. Click + Additional Tax
3. Complete the following fields:
   • Select Tax: Choose the province (Required)
   • Filing Status: N/A (Required)
   • Additional Fields: Additional Withholdings, Dependents, Exemptions (Not Applicable for Canadian Provincial Taxes)
4. Click Save

Editing Provincial Tax Information

1. Navigate to Tax Setup and select the Details tab
2. Click into any field in the Provincial Tax row
3. Make changes using text entry or checkboxes
4. Use the Actions column to confirm or cancel:
   • Blue Checkmark = Save changes
   • Red X = Cancel changes

Success or cancellation messages will display after you confirm or cancel your edits.

Displaying Provincial Taxes

Use the Column Selector at the top right to customize which tax parameters are visible in the display.

CA Provincial Tax Parameters

Not applicable for United States talent configurations

The Provincial Tax parameters are identical to CA Federal Tax parameters (see CA Federal Tax Parameters above), with the following differences:

• Tax Name displays the provincial tax name (e.g., "Ontario")
• Exemption Amount is based on the Provincial TD1 form rather than the Federal TD1
• Tax Exempt affects only the provincial tax (not federal, unlike CA Federal Tax)

Note: The Prescribed Zone field functions identically for both Federal and Provincial taxes.

Default Taxes

The Add Default Taxes button automatically generates tax information based on the employee's geocode and populates the Federal, State, and Provincial Tax sections.

1. Click the Pencil Icon within the Contact Information widget to edit the information

2. Locate the GEO Code dropdown and select the corresponding code to the listed address

3. Click the Save button

4. Refresh the page and the Tax fields will automatically generate according to the GEO Code selection

Check Delivery Options

The Check Delivery dropdown allows you to select how checks are distributed to employees.

Defaults:

• Hold at Employee Branch
• Hold at Customer
• Mail to Employee
• Hold at Customer Branch

User Created:

• Additional Check Delivery Options can be created in Back Office 
  • Admin Tools > Config Choice > Category = "CheckDelivery"

Tax History

The Tax History tab provides a comprehensive view of historical tax deductions organized by year, showing both talent (employee) and employer portions of tax withholdings.

Accessing Tax History

1. Navigate to Talent Profile
2. Select the Tax tab
3. Click the History tab

Understanding the Tax History Display

Organization Structure

Supplier and Year Display:

• Supplier name appears at the top (e.g., "Staffing")
• Years are listed in descending order (most recent first)
• Click on any year to expand or collapse detailed tax information

Talent Taxes Section

The Talent section displays talent tax withholdings with the following columns:

When expanded, a Total Talent Taxes row displays the sum of all talent tax amounts.

US Talent Tax History Example:

CA Talent Tax History Example:

Employer Taxes Section

The Employer section displays employer-paid taxes with the same column structure:

When expanded, a Total Employer Taxes row displays the sum of all employer tax amounts.

US Employer Tax History Example:

CA Employer Tax History Example:

Filtering Tax History

Use the Filter option at the top of the Tax History tab to display results for specific division(s). Only tax history associated with selected divisions will appear.

Access Permissions

Tax history respects office-level access permissions:

• Users can only view tax history for offices they have access to
• If you don't have access to any offices with tax history, a message will indicate no accessible tax history is available
• Tax history for offices outside your permissions will not be displayed

Talent Tax Setup Audit

1. Go to the Talent/Employee that you'd like to view the changes for
2. Click on the i icon
   1. If you don't see the i icon then hover over the Talent Name

Tax Setup Updates are logged when changes made to the talent tax setup are saved using the Actions confirmation.

Best Practices & Troubleshooting

Best Practices

Tax Exempt vs. Special Exemption Values

When to use Tax Exempt checkbox:

• Talent is legally exempt from all tax withholding AND wage reporting
• You have proper documentation (W-4 claiming exemption, official exemption certificate)
• Requires special permission

When to use special exemption values:

• US Federal: Set Deductions = 999999 for Exempt Tax with taxable wages updated
• US State: Set Exemptions = 999 for Exempt Tax with taxable wages updated
• Use when talent is exempt from withholding but wages should still be reported

Year-End Considerations

• Review all Tax Exempt settings before year-end processing
• Verify Annual Credit and Annual Deduction values expire and need reapplication
• Confirm IRS Lock-In letters are still in effect
• Update any expired certificates or authorizations

Multi-State Talent

• Always verify reciprocal agreements when talent works in a different state than residence
• Check NR_CERT status for work states with reciprocal agreements
• Ensure both resident and non-resident state taxes are configured appropriately

Troubleshooting

Tax Not Calculating

Check these common issues:

1. Is the tax marked as Active? (Unchecked means no calculation)
2. Is Tax Exempt selected? (Prevents calculation and reporting)
3. Do you have the correct Filing Status selected?
4. For state taxes, verify Resident vs Non-Resident designation
5. Check if there's an IRS Lock-In preventing changes

Wrong Tax Amount Being Withheld

Review these settings:

1. Verify Filing Status is correct
2. Check Exemptions/Exemption Amount values
3. Review Additional Withholding (Add WH) field
4. For Fixed Amount or Fixed %, verify those values if used
5. Confirm Qualifying Children and Other Dependents are accurate

Cannot Edit Tax Configuration

Permission issues:

1. Verify you have Edit Talent Tax permission
2. Check if IRS Lock-In is enabled (requires special permission)
3. Confirm you have office access for this talent
4. For Tax Exempt field, verify Edit for Tax Exempt permission
5. For Active field, verify Edit for Active permission

State Tax Not Appearing

Configuration issues:

1. Confirm talent has both work and resident addresses configured
2. Verify the state has required tax withholding
3. Check if NR_CERT applies for reciprocal agreements
4. Ensure you have access to the office where the tax should appear

Canadian Annual Credits Not Working Correctly

Calculation issues:

1. Verify the value is entered as an annual amount (not per-pay-period)
2. Confirm talent has consistent pay frequency
3. If mid-year, ensure you've calculated the adjusted value correctly
4. Check that the credit/deduction was approved for the current year
5. Remember these values must be reapplied annually

Getting Additional Help

If you continue to experience issues after trying these troubleshooting steps:

1. Document the specific issue and steps you've taken
2. Note the talent ID, tax type, and error messages (if any)
3. Check with your payroll team for company-specific configuration requirements
4. Contact your system administrator for permission-related issues
5. Submit a support ticket with all relevant details