How_do_I_review_state_withholding_tax_

How do I review state withholding tax?

This is part of the quarterly reconciliation checklist. These instructions will help you verify the state withholding amount paid for the quarter. You can also use these instructions to verify the state withholding amount paid each pay period or month.  

These instructions will show you how to verify state withholding tax using the pay code transaction report, but you can also use the 

  • Payroll history, or the

  • Employee tax summary. 

Watch a video

Learn how to use the state withholding report and pay code transaction report to reconcile state withholding. [MP4]

First, print the SWT report for the quarter

The SWT report will show the total wages subject to state withholding. The SWT form shows the tax withheld and the total amount paid. 

Second, print the pay code transaction report

You will need to add the hours worked for the pay codes that have hours that go towards work hours for your employees. This may not mean adding every pay code that gets hours in your system. It means adding the pay codes that will be used to calculate state withholding. For example, pay codes for vacation, sick pay, and paid time off may not go towards hours worked or cannot be categorized that way, so those pay codes would not be included. 

Add the pay codes for 

  • Regular pay, employee hours

  • Overtime, employee amount

  • Hol Work, employee amount

If you need help setting up this report, contact customer service at (800) 228-9851 for assistance. 

Second, compare the SWT report to the pay code transaction report

Check if the 

  • taxable amount on the SWT report matches the taxable amount for the SWT pay code on the pay code transaction report. 

 

 

Copyright © 2025 Caselle, Incorporated. All rights reserved.

    • Related Articles

    • How do I review state combined report?

      This is part of the quarterly reconciliation checklist. Follow these instructions to verify state unemployment withholding, workers compensation, and state withholding tax. The state combined report pulls this information and prints it on one report. ...

    • How do I add a withholding tax number to a 1099 vendor?

      Add the withholding tax number to a 1099 vendor. You may need to include the withholding tax number in the electronic 1099 file. When you select the 1099 vendor state, the 1099 Information section will show a box for entering a withholding tax ...

    • 2c. Review the subject to pay codes

      Payroll Year-end Checklist If you have pay codes that are subject to or exempt from tax, follow these steps to verify that the pay codes that are subject to Social Security, Medicare, Federal Withholding Tax, and State Withholding Tax have the tax ...

    • 7b. Update new federal and state tax rates

      IMPORTANT DO NOT load the new tax rate information until AFTER the payroll year is closed. The new Federal and State tax rates are available to download. What are the new federal and state tax rates? Payroll uses the federal and state tax tables to ...

    • What is the additional Medicare tax withholding?

      Pursuant to IRS Notice 1036: “In addition to withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare tax from wages you pay to an employee in excess of $200,000 in a calendar year. You are required to begin withholding ...