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In version 5.0.58 and higher, you can generate an interim state forecast tax rate based on multi states. When the system generates a Forecast State Rate, it includes the impact of the forecast state apportionment.
Actual Apportionment Totals 100% for All Units
| • | In the Actual section of the software if the Apportionment for a unit adds up to 100%, then the system properly allocates 100% of the Actual PTBI and multiply it by the Forecasted State Rate post forecasted apportionment. |
Actual Apportionment Is Greater/Less than 100% for Any Unit
| • | In the Actual section of the software, if the Apportionment for a unit is less than or more than 100%, the system does not accrue the correct amount and an adjustment must be made. The software first apportions the PTBI by the Actual Apportionment and then apply the Forecasted State Rate, which already has the impact for the Apportionment from the Forecast included. |
| • | To allocate 100% of the PTBI, activate an additional state (possibly AO All Other) in the unit and enter the difference between the total units apportionment as Current Apportionment for that state. No other apportionment or tax rates need to be entered for the state. It is not recommended that you change the apportionment in the existing active states, because they may obtain an incorrect accrual for the state tax time apportionment for discrete items. |
| • | To quantify the amount that the unit is over or under 100%, an Administrator can run a query in the TS Database Analyzer. |
| • | Copy the following query statement: select u.code, d.name, sum(STATEAPPRATE) from UNITSTATEDATASETS usd, units u, datasets d where usd.datasetid=(<cc_dataset>) and u.unitid=usd.unitid and d.datasetid=usd.datasetid group by u.code, d.name. |
| • | Paste the query in the top section of the TS Database Analyzer screen and click Run Query. |
| • | A 4-column report is generated that lists all active units with the sum of the state apportionment. If the result is .85, create a state in that unit with a current apportionment of 15% or if the result is 1.12% then create a state in that unit with a current apportionment of (12)%. |
Interim Forecast State Rate
You can calculate the forecast state rate two ways. The designation is made by using the USE_WWPTBI_STATEFCRATE dataset parameter with a paramvalue of 0 or 1.
| 1. | The system uses pre-tax book income that includes only units with an active state record if you set the dataset Parameter Value to "0". |
Parameter Name: USE_WWPTBI_STATEFCRATE
Parameter Value: 0
| 2. | The system uses pre-tax book income that includes the pre-tax book income of all units, regardless of whether it has an active or inactive state record if you set the Parameter Value to "1”. |
Parameter Name: USE_WWPTBI_STATEFCRATE
Parameter Value: 1
Note: The dataset parameter USE_WWPTBI_STATEFCRATE applies to both Reporting and Reporting (Legacy) reports.
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