How to enter Puerto Rico withholding

Setup in Clarity

Be sure that Clarity has been set up in the following way:

Steps:

1. Under Configuration > Company > Company Edit > US Taxation.
   Puerto Rico should be listed as a State. If it is not, use the ‘Add state’ button at the bottom of the screen.
2. For each employee that is to be taxed in Puerto Rico: Go to Employees > Employee Master Paycard > Taxes tab.
   Make sure that ‘Puerto Rico Income Tax’ is listed and that the ‘Active’ box is checked beside it. If it is not there, use the ‘Add tax’ button in the lower left to add it.
   NOTE: If the employee has opted in Box D to pay additional withholding, then an additional code ‘Puerto Rico Additional Income Tax’ can be added to Clarity.
3. Once the proper items are set up: Go to Employees > Taxation Information
   Make sure that the employee’s Taxation State is Puerto Rico, and that the ‘State’ is also Puerto Rico.

Puerto Rico – State tax status

Add state Puerto Rico and enter information from Form 499 R-4.1.