How can I determine how much to withhold for my employees residences within the Regional Income Tax Agency s member cities?
Compare workplace tax rate to the credit limit of the taxpayers resident city. If the workplace tax is greater than or equal to the credit limit, use the credit limit percentage. If workplace tax rate is lower, use the lower rate. Multiply the rate from the prior step above by the tax credit of the resident city. Subtract the amount from the prior step above from the tax rate of the resident city. The remaining value is the percentage of the individual’s gross wage to be withheld for their residence.
