Taxation - Work Site and Remote Employees

Taxation - Work Site and Remote Employees

If your company has employees in multiple states, the system will tax the employee in one of two ways. The first and most common would be to tax the employee based on the Cost Center called "Work Site/Delivery Location", which would typically indicate any of the physical location's employees work at per EIN on file. This would be usually an office or a brick-and-mortar location. This setting will also dictate where live checks for employees or physical W2s will be sent to.

 

In the second scenario, the employee works remotely and needs to be taxed based on their home address. In this scenario, the employee MUST have a "Work Site/Delivery Location set to "Remote" vs. the name of the physical location.

 

In order to tie the "Work Site/Delivery Location" Cost Center to the employee, navigate to the employee's profile (Hamburger Menu > Team Icon > My Team > Employee Information - click employee icon). Once there, search Cost Centers, and under "Work Site/Delivery Location" choose the appropriate option. Both scenarios are shown below.


Brick and Mortar/Office:

 

 

Remote:

 

 

 

 

 

 

NOTE:

 

If the employee was added to the system without this setting set up first, you must also go to the employee's tax information in order to update the unemployment state and ensure they don't have the default tax on file that does not match where they actually should be taxed at.

 

To check on this, navigate to the payroll tab in the employee profile and choose Tax Information. Click "State", then scroll down to see the Unemployment State assigned. If the incorrect state is assigned, choose the ellipses to edit to the proper state.

 

Note: 

If payrolls have been processed with the incorrect state, you must reach out to your payroll specialist to discuss how to void/reissue incorrect pay statements.

 

Now, check to ensure that the default state taxes are removed. Scroll up to the state info, when you see the state that is incorrect, choose the ellipses to delete the state the employee would not be paying taxes toward.

 

Be sure to SAVE the employee updates and again, if any taxes were processed incorrectly, reach out to your payroll representative for assistance.

 

If you are in the middle of a payroll and this happens, make sure to update the employee information as listed above. Then once back in the payroll, go to the pay statement for the employee being incorrectly taxed, click "Utilities" then "Options". Once in the options screen choose "Remote" under the  "Tax Location" option. Click "Apply Changes". Then recalculate the pay statement and "Preview" to ensure any erroneous taxes have fallen off.

 

Future payrolls will not need to be edited after the proper cost center for taxation is added to the employee record.

 

 

 

To check on the address on file for any existing "Worksite/Delivery Location" Cost Centers currently available, navigate to the Hamburger Menu > Gear Icon > Global Set Up > Cost Centers - find the "Worksite/Delivery Location" tree, then as you open up the levels to the tree you can see the address listed. For any updates to addresses, please reach out to your assigned payroll specialist.

 

 

Be sure to check out the article that explains what Cost Centers are and how to utilize them found  HERE .

 


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