This page provides an overview of the US Assignment Type tax position, which can be used to generate Cost Estimates between two American states, as of Equus Tax Engine v.25.4.
A domestic cost estimate provides federal income and social taxes, along with home and host state income taxes. Where double taxation occurs, a credit is taken in the home state for taxes paid in the host state on assignment income. The tax credit is applied against assignment-related tax in the home state, meaning in partial years, employees may still be liable for taxes in the home state, even when travelling to a higher-tax state.
To calculate a domestic cost estimate:
United States must be the home and host tax estimator.
US Assignment Type must be set to Domestic on the United States home tax estimator.
Tax Calculation Method must be Equalization.
The US Domestic Cost Estimate Tax Position Set is included with Equus Platform v.25.4 to aid in configuring domestic cost estimates by hiding and locking any tax positions that will be ignored by the Tax Engine.