Taxes

Updated Dayforce with a new COE (convenience of employee or convenience of employer) option to enable employers to accommodate correct taxation for telecommuting employees based on whether the employer has a COE rule in place.

With this update, an update was made to add option for employers to mark a specific project as a COE Project. To support this update, the option Enable Convenience of Employee (COE) Taxation (US Only) was added to System Admin > Client Properties in the Properties tab under the Payroll section.

When this COE rule is configured for your instance, organizations can configure a project with a COE Project flag in the event they have working from home at the convenience of the employer. This can be configured in

This update also supports configuring the primary work location of a telecommuting employee with the Convenience of Employee checkbox option (in the People feature, in the Work > Work Assignments screen, in the Payroll section. When this option is configured in the People feature for the employee, it indicates that the telecommuting employee is working from home at their own convenience, NOT the convenience of the employer. The employee will be subject to tax in both the COE states.

Additional related information is available in entry 1409918 in these release notes.

For more information about the COE taxation rule, see “Convenience of Employer and Employee (COE) Taxation Rule” in the Payroll Administrator Guide.

Added the ability to map employee contributions for the Colorado Paid Family Medical Leave Act (PFML) in compliance with new state tax codes. Employers should report such deductions on IRS Form W-2 in Box 14, and list FAMLI as the label.

Updated the Payroll > Tax Definitions screen in People in an employee's HR record. In the Quarterly/Annual Reporting Parameters section, the Standard Occupational Code field was removed to comply with requirements set by jurisdictions for SOC reporting.

In Dayforce, SOC codes are now configured at the employer-level for each job in the SOC Occupational Code field in Org Setup > Jobs and Job Assignments in the Jobs and Job Assignments tab. See "Create Jobs" in the Dayforce Implementation Guide.

Updated the US tax forms for employees for 2023. The following is a list of tax forms in which the year, instructions, or both were updated:

• 1099-R
• 1099-M
• 1099-NEC
• W-2
• W-2AS
• W-2GU
• W-2VI