Use this activity to enter report codes for tax withholding. These codes enable you to report tax withholdings separately for federal and state purposes. At the state level, you can define codes for each state or other local jurisdiction for which you are withholding taxes. Tax withholding may be required by law for certain supplier payments. In the United States, for example, backup income tax withholding for IRS Form 1099 may be required if the supplier fails to furnish you with his or her taxpayer identification number.
There are no prerequisites for this activity.
As a result of this activity, one or more report codes for tax withholding are defined in the system.