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To configure Employee Maintenance for multistate payroll

1. Select Payroll Main menu > Employee Maintenance.

2. On the Wages tab, in the Primary State and Local fields, enter the default codes for a specific employee. In Payroll Data Entry, all earnings entries for the employee default to the primary state and primary local codes. The default information can be overridden to enter earnings information for other state and local jurisdictions. For more information, see Employee Maintenance - Fields.

3. The filing status information can be entered for federal, state, and local jurisdictions. For an employee earning wages in multiple state and local jurisdictions, the filing status information must be entered for each jurisdiction. To enter the filing status information, enter the appropriate codes in the Primary State and Local fields. There is no limit to the number of jurisdictions entered for a specific employee.

4. In the SUI State field, enter an unemployment state if an employee has state tax withholding in one state, but state unemployment must be paid to another state. The SUI state entered is determined based on state tax laws. The SUI State field is used to calculate employee SUI and SDI, if applicable. If the SUI State field is left blank, the state where earnings are recorded during data entry is used to calculate and pay SUI and SDI.

5. When SUI state codes are used, SUI wages are included in the Gross Wages amount on the Quarterly Tax Report. The State Totals amounts print on the final page of the state report; the State Totals columns reflect the sum of all states for which there are wages recorded. Select the Print State Data check box in Quarterly Tax Report to produce state reports.

6. On the Main tab, click Tax Summary. Depending on the tax code selected, either the Federal Tax Summary or State and Local Tax Summary window appears. The Tax Summary window displays the employee's gross wages, taxable wages, and tax withholding information separately for federal, state, and local jurisdictions.

7. Click Accept.

To determine which state and local codes (tax jurisdictions) have been established for an employee, click the Lookup button in the State or Local field on the Payroll Data Entry Lines tab.

 Example

An employee has state tax withholding in state AA and state unemployment is to be paid in state BB. BB would be entered in the SUI State field in the Employee Maintenance Wages tab for this employee to calculate SDI and/or employer/employee SUI. Assume that the employee earned total wages of $5,000.00 for the quarter.

State AA 4,000.00
State BB (SUI state) 1,000.00
Total Wages for Quarter 5,000.00

The quarter-to-date gross wages for state AA is $4,000.00. The quarter-to-date gross wages for state BB (SUI state) is $5,000.00 ($4,000.00 + $1,000.00), although the withholding wages are $1,000.00. When the Quarterly Tax Report is printed, the State Totals amounts on the final page of the state report include the gross wages for a total of $9,000.00; this may seem like a distorted amount, but it is correct.

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