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Payroll taxation at the State level can become quite complicated when your company is awarded construction projects located outside of your home state.  The following narrative explains the options you have when you need to override the default hierarchy for State payroll taxation.

Current Retrieval Method

As a general rule, state taxation should originate in the State where the work is performed.  During the payroll time entry process, Sage 300 CRE looks at the following settings to determine which State tax table is selected when your payroll is processed:

  • If time IS charged to a Job:

 

 

 

 

 

 

 

  • If time IS NOT charged to a Job:


 

 

 

 

 

Overriding the Defaults

There are instances, however, where you may not want state taxation to follow the job location.  For example, if you have supervisory personnel charging their time to a job (Project Managers, Administrative Assistants, etc.), but working out of the home office, the Sage 300 CRE software offers multiple ways to override the State tax retrieval method shown above:

  1. If you want a specific employee to ALWAYS be state taxed in their designated WORK state, regardless of the project’s address, check the box: “Use employee work state/local”:

 

 

 

 

 

 

 

 

 

 

2. If you want to manage this exception by job, modify the cost code where said employees’ time will be coded by checking the same box (and leaving the employee master box unchecked):

 

 

 

 

 

 

 

 

3. Alternatively, you can setup Tax Reciprocity Tables to point State taxation IDs from one state to another (on a global basis):

 

 

 

 

 

 

 

 

 

 

4. Or on a specific employee basis:

 

 

 

 

 

 

 

 

See Knowledgebase article #21193 for more information about setting up Reciprocity Tables.  Of course, check with your State’s Taxation Department to find out if there are reciprocity agreements in place between your company’s home state and any border states.

Should you need any further assistance managing your company’s multi-state payroll taxation issues, please call your United Solutions, Inc. consultant.

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