US Payroll Tax – Registrations

Context: Amazon has major presence in the United States with ~1 MN employee base. It is very important that Amazon pays its
employees salary on time and accurately along with aligning with the state rules/regulations. In continuation to new location / pay
group setup process, registering Amazon businesses with required state/local agencies is a critical and time sensitive process.
Registration process makes sure to validate and setup Amazon accounts at agency end in order to accept the tax payments and
fillings as per compliance laws.

Scope: All registrations needs to be completed and all the account numbers should be updated in ADP Smart Compliance and/or
provided to ADP no later than header lockout period (Quarter close). (Example for 1Q, the due date is April 30 th and ADP locks
header for Amazon on April 15th. Hence all the ID updates for 1Q should be done before April 7th to file the reports appropriately by
the due date).

Impact: Failure to perform registrations in a timely manner could result in:

 Taxes/Returns may get deposited/filed late which would lead to P&I on late deposits/returns.
 E-file rejects -Agencies would reject the filings if the ID/Account is not registered.
 Financial exposure in terms of charges made by ADP for each Applied for ID/NA profile.
 Non-compliance with the state requirements.

Acronyms/Abbreviations:

 FEIN: Federal Employer Identification Number

 SUI: State Unemployment Insurance
 SIT: State Income Tax
 CIT: City Income Tax or Local Tax
 Applied For: Temporary Account Number given by ADP until the government assigns one
 NA: Not Authorized
  ADPSC: ADP Smart Compliance
 PF: Pay Force
 TPA: Third Party Administrators
 POA: Power of Attorney
 LR – Liability Report

SOP Governance:

Process Owner: Primary Point of Contact: Aditya

SOP Creator/Editor: Aditya Last Edit Date:
SOP Reviewed By: Review Date:
Time to complete (one SLA/Metric: State Registrations will be
process cycle): done on weekly basis. Local
Registrations to be completed
within 24 hours after the local
code is setup.
Software Required: ADP Portal Permissions Required: ADP Portal
ADP Smart Compliance ADP Smart Compliance
ADP4ME ADP4ME
Microsoft Excel

SLA/Metric:

 State Registrations needs to be completed as soon as we get.

 Local Registrations to be completed with in 24 hours after the local code is setup.

STEPS TO BE FOLLOWED FOR STATE REGISTRATIONS:

S.
Steps, Navigation Links, Hints, Aids
No
Send an email to McDaniel, https://myadp-admsmart.idp.amazon-corp.com
Steve in ADP at
1. Steve.McDaniel@adp.com to get
the NA report after every on-
cycle payroll.
Click on Reports – Employment
Tax - Click on Profile
2. Maintenance drop down
towards the left then click on
Applied for IDs

Select the current quarter and

year, click on next, run report,
export to excel. This will give
3.
you the report of all the
jurisdictions active under
Applied for ID.

Check with the main tracker for

Path for saving main registration tracker:
pending registrations and
4. Z:\TAXES\ER TAX\2024\Applied for ID Registrations\Registrations\1Q2024
proceed with the pending
registration

5. Make sure you include all the combo codes for the company while pulling the Liability
Report
Login to pay force
https://myadp-
 admnasportal.idp.amazon-
corp.com to pull the Liability
Reports.

Path to find the State Codes: HYD Payroll > Registrations > ADP State Codes
In ADP Portal, Enter your
credentials > Login > Reports >
Run a separate report for each legal entity/state combination included on the Applied for ID
ADP Reporting > Run > Run
report
Custom Reports > Enter “appl”
in the Report Name / Title >
Choose the state/local by
clicking on the three dots and
run > The Job data and Tax data
fields will always be All >
Paycheck Begin Date: Enter two
6.
years prior date > Paycheck End
Date: Enter the current month
end > Enter the local/state
codes and the Pay Group > Click
on Run. A separate window will
open > Click on the three dots >
XLS > You will see the Liability
report with the details like
employee name, file number,
etc.
7. Make a note of the first
check/liability date, Clock
Number, and Employee Count
 and Employee ID within the
jurisdiction in the consolidated
sheet.

If no payroll activity within the

jurisdiction, no additional action
8. is required until the first check
date for this jurisdiction has
occurred

The we will have to try to do the

registration by going online on
the website or by sending an
email to agency, once we
process the online registration
9
we need to followup with the
agency to get the ID

If no ID is provided, contact the Look up for phone number for Employer Accounts on tax agency web site.
agencies post two weeks of
registration submission to
obtain the account number.
10.
(Note: If you are calling SUI
agency, confirm the rate.
If you are calling SIT agency,
confirm the frequency.)
 Few Agencies would send
Registration confirmation letters
through Mail at Amazon’s
11. Mailing address (P.O. Box
address). These can be seen in
Paper Mail and Tax Agency
Notices CTI.
Separate Add Jurisdiction Forms should be filled for each legal entity.
Once the account number is
obtained, update it in ADP Smart
Compliance. If you are unable to Path where add jurisdiction are saved
update the ID for any reason, ‘Z:\TAXES\ER TAX\2023\Add Jurisdiction’
provide the details to ADP.
12. Create SR to ADP and attach an
Add Jurisdiction Form in the SR.
Link to create SR’s to ADP
https://adp4me.adp.com/Portal

Review Smart Compliance to

13. confirm if the account number is
updated appropriately.
14. ADP Bridge link
Please assign TPA and POA as
soon as the ID is updated in your https://www.adp.com/resources/tools/compliance-deposit-frequency-chart.aspx
records. Please refer to the
TPA/POA requirements sheet
that will be saved in shared
drive. Also, check the
 requirements in ADP Bridge.

SR Link:
If any ID is received and updated
after the quarter close, request
for a late filing through SR. https://myadp-adminadp4me.idp.amazon-corp.com

ADP would charge us for filing

late filings, they would ask us to SOW Path:
approve SOW (statement of Z:\TAXES\ER TAX\2024\SOW
work) in which they will include
15. the details of the charge. ADP
will charge $350.00 per
paygroup, per tax period and
per tax type. Ensure to get the
SOW reviewed by your Manager
and get it approved. Save the
SOW document in the share
drive and track the details in the
SOW tracker
16. Special Handling Instructions:

Please look out for the

additional requirements if any
for the respective states.

For the state of WA, once the

 form is submitted with the
agency, the agency may take 6-8
weeks to setup the SUI ID (ESD
number). Initially the application
will be reviewed by the
Department of Revenue who
generates the license number
and the UBI and then they
forward the same to the
Employment Security
Department who sets up the
ESD/SUI ID. Once the UBI is
setup we need to contact the
agency in order to obtain the
L&I account. We need to have
all these ID’s for the state of
WA.

If you receive UBI from the

agency, update LTC,FLI/MLI
headers with the UBI number
and contact the L&I agency for
PAC code to add the L&I account
number to the list of Amazon
accounts on the agency website
 PROACTIVE REGISTRATION PROCESS:

The employee level details like the actual or estimated hire date and actual or estimated wages and the date the wages to be paid
are needed to initiate the registrations as most of the state agencies requires these details while registering companies for SIT and
SUI taxes.

Currently, we need to run LR’s on a weekly basis for the list of items from NA/APPLFOR report and the LR will not capture the
employee or the wage details until they are paid or actually due in the next few days. To avoid repetitive efforts of running LR which
may also cause the delay in registration process, we can actually proceed with the registration if we can have these basic details
provided at the time of setting up new location.

Once the location setup is done, the location team should send an email to POC of registration with all the basic details like actual or
estimated hire date and actual or estimated wages and the date the wages to be paid. With these details readily available, we can
initiate the registration process like filling the details and sending it to the JIM to submit the registration. This helps in avoiding
delays in the registration process.

For example, if a location is setup on 07/01 for a Monthly employee, we can proceed with the registration providing the details of
the employee hire date and his/her estimated wages as LR in this case will not be capturing the employee details until the last week
of July. If we have to depend on LR, we should hold on to the registration process until last week of July. On the other hand, we can
go on with the registration process once the location setup is done if we have these details ready.

Example: - We recently could do the registrations for ‘MGMS’, ‘Amazon Kuiper Commercials Services LLC’ and ‘BOP LLC’ for KY state.

Courtesy Registration:

Generally we do register our companies in the states that we have our office location or if we pay wages to the employees
working
Every employer who is required to withhold State income tax must register their companies in the respective states
where they have their office locations. Generally we withhold taxes for the employees in the states that they are
working for. However, in few cases employees have to pay taxes to the states where they live in as residents. In
these case few things are considered like the reciprocity agreement between the states

Reciprocal Agreements

Reciprocal agreements allow residents of one state to work in a neighboring state while only paying income taxes to their state of residency.
This simplifies tax time for people who live in one state, but work in another by requiring them to file only one state tax return. If the state
where you work and the state where you live have a reciprocal agreement, you are exempted from income taxes on any wages earned in the
state where you work. You only have to pay taxes to the state where you live.

These jurisdictions have reciprocal agreements:

• District of Columbia: If you work in D.C. and are a resident of any other state you do not have to pay D.C. income taxes on your wages. You
would submit exemption Form D-4A to your employer.

• Illinois: If you work in Illinois and are a resident of Iowa, Kentucky, Michigan, or Wisconsin you do not have to pay Illinois income taxes on your
wages. You would submit exemption Form IL-W-5-NR to your employer.

• Indiana: If you work in Indiana and are a resident of Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin you do not have to pay Indiana
income taxes on your wages. You would submit exemption Form WH-47 to your employer.

• Iowa: If you work in Iowa and are a resident of Illinois you do not have to pay Iowa income taxes on your wages. You would submit exemption
Form 44-016 to your employer.

• Kentucky: If you work in Kentucky and are a resident of Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, or Wisconsin you do not have
to pay Kentucky income taxes on your wages. You would submit exemption Form 42A809 to your employer.
• Maryland: If you work in Maryland and are a resident of District of Columbia, Pennsylvania, Virginia, or West Virginia you do not have to pay
Maryland income taxes on your wages. You would submit exemption Form MW 507 to your employer.

• Michigan: If you work in Michigan and are a resident of Illinois, Indiana, Kentucky, Minnesota, Ohio, or Wisconsin you do not have to pay
Michigan income taxes on your wages. You would submit exemption Form MI-W4 to your employer.

• Minnesota: If you work in Minnesota and are a resident of Michigan or North Dakota you do not have to pay Minnesota income taxes on your
wages. You would submit exemption Form MWR to your employer.

• Montana: If you work in Montana and are a resident of North Dakota you do not have to pay Montana income taxes on your wages. You
would submit exemption Form NR-2 to your employer.

• New Jersey: If you work in New Jersey and are a resident of Pennsylvania you do not have to pay New Jersey income taxes on your wages. You
would submit exemption Form NJ-165 to your employer.

• North Dakota: If you work in North Dakota and are a resident of Minnesota or Montana you do not have to pay North Dakota income taxes
on your wages. You would submit exemption Form NDW-R to your employer.

• Ohio: If you work in Ohio and are a resident of Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia you do not have to pay Ohio
income taxes on your wages. You would submit exemption Form IT-4NR to your employer.

• Pennsylvania: If you work in Pennsylvania and are a resident of Indiana, Maryland, New Jersey, Ohio, Virginia, or West Virginia you do not
have to pay Pennsylvania income taxes on your wages. You would submit exemption Form REV-420 to your employer.

• Virginia: If you work in Virginia and are a resident of the District of Columbia, Kentucky, Maryland, Pennsylvania, or West Virginia you do not
have to pay Virginia income taxes on your wages. You would submit exemption Form VA-4 to your employer.

• West Virginia: If you work in West Virginia and are a resident of Kentucky, Maryland, Ohio, Pennsylvania, or Virginia you do not have to pay
West Virginia income taxes on your wages. You would submit exemption Form WV/IT-104R to your employer.

• Wisconsin: If you work in Wisconsin and are a resident of Illinois, Indiana, Kentucky, or Michigan you do not have to pay Wisconsin income
taxes on your wages. You would submit exemption Form W-220 to your employer.
Special Note Regarding New York Tri-State Area

You’ll notice that the New York tri-state area is absent from this list. New York, Connecticut, and New Jersey do not have a reciprocal
agreement. This means, for example, if you work in New York and live in New Jersey, you would have to pay New York income taxes as a
nonresident and also pay New Jersey income taxes as a resident since you live in New Jersey. However, residents of New Jersey (and most other
states) can take a tax credit for taxes paid to other jurisdictions.

STEPS TO BE FOLLOWED FOR LOCAL REGISTRATIONS:

The responsibility of local registrations is within the Tax team. Tax Team is responsible to process local registration within 24 hours
of local code setup under APPLFOR ID or NA by following the below steps.

1. The local codes that are setup under APPLFOR ID/NA needs registration. that are updated with the status as ‘Agency’ in the
local tracker. The local tracker will be updated with the status as ‘Agency’ if any code is setup under APPLFOR ID/NA. These
items to be copied to the main registration tracker under the Local registration sheet.
2. Review the agency website to check the requirements on local registrations. Download the application forms, fill in all the
necessary details in the form, stamp with Kurt Lamps signature and send the completed forms to the agencies either through
email or through fax. For PA, refer to https://munstats.pa.gov/Public/FindLocalTax.aspx
3. Few local agencies need registration fee to be sent along with the application form. In this case, create a payment ticket and
have the payment and the application form mailed out through the payment ticket.
4. Once the forms are sent to the agencies, follow steps 13 to 15 of state registration process from following up with the
agencies, obtaining the ID and updating them in Smart Compliance and updating the status in the main registration tracker.

Screenshots to navigate through Smart Compliance and Pay Force.

1. Login in to ADP Smart Compliance

2. Choose Employment Tax under Reports on the left-hand side, then choose Applied For ID, then current quarter, next and Run
3.
4. We will get the below report, export it in to an excel.
 Pay Force Navigation:

1. Login in to payforce - https://myadp-admnasportal.idp.amazon-corp.com

2. Choose ADP Reporting under ‘Reports & Analytics’ Header

 ,

3. It will take you to the next page, then choose RUN and select RUN Custom Reports option
 You will see the above Applied for ID options once you click on filter.

Choose the state/local by clicking on the three dots and run. For example, if you want to pull the
report for SUI, click on the highlighted three dots and select Edit/Run.
Make sure Option “3 – Job Dta – Dynamic Join 01” and “Effective Sequence” should always be as “All Records” and “All” respectively.

Pay Group Option – Enter all the combo codes for the company.

Paycheck Begin Date “Select two years prior to today’s date”. For example, if today’s date is 07/24/17, select 01/01/15.
Paycheck End Date “Select today’s date or a future data”. For example, if today’s date is 07/24/17, select 07/31/17.

SUI Code – Path to find the State Codes: HYD Payroll > Registrations > ADP State Codes.
Click on Run.
When the report is completed and if there is liability for an employees, you will see the no.of records in the report. If the records is 0, there is no
liability. If the records has a number, it should be opened and reviewed to verify the liability against the jurisdiction that was run .

Click on the three dots and select “XLS” option. This will open an excel spreadsheet with the EE details such as EE ID, EE Name, Gross Wages,
First Pay Date, Clock Code.
Sample of LR Report:

Main Registration Tracker to include the columns:

1. Status: The status of the particular line item, form sent to Agency or ID updated.
2. Form sent to Agency: The date when the registration forms filled and submits the registrations with the agency
3. Account Number forwarded/Updated at ADP Records: The date when the ID is updated in ADP Smart Compliance
4. Forward/Updated By: The name of the person who updated the ID, it could be Tax team or ADP
5. Source: Whether it is from APPLFOR report or from NA report
6. Account # Assigned: ID number
7. SR #: Provide the details of SR if raised any
8. Federal ID: FEIN of the company
9. ST: State Short form
10. Br: Branch code. Branch for Amazon entities is 74
11. Co: Pay group
12. Company: Name of the company
13. Tax Type: SIT,SUI, CIT
14. Jurisdiction: State Spelled out
15. State Code: State code number, can be obtained from ADP State codes sheet
16. Company Codes: to be obtained from paygroup listing
17. Agency Name: Name of the Agency like Berkheimer
18. Concatenate: company name, Tax Type, Jurisdiction and state code
 19. Status : the same as row A
20. Liability Date: The first liability date obtained from LR
21. No. of Employees:
22. EE ID:
23. Clock Number
24. Location Address: either the location address or the residential address of an employee in case of Virtual obtained from
People Portal.
25. Virtual
26. Hire Date
27. AB. Nature of Business: Designation of the employee Example: Project Manager. Incase of virtual employee – Work from
Home – Project Manager
28. AC. PSD Codes: Needed in case of PA locals
29. AD. Notes
30. AE. 1st Call
31. AF. 2nd Call
32. AG. 3rd Call

Sample Registration tracker can be found in the path ‘Z:\TAXES\ER TAX\2023\Applied For ID - Registrations 2023\1Q2023 State
Registrations’