You can configure the multi-state threshold taxation for eligible employees in People by loading an employee's profile and clicking Employment > Employee Properties. The following is a list of fields and options in this screen:
- Property: A drop-down list from which you can select the Multi-State Threshold Taxation option.
- Description: Automatically populated with the message "Used to indicate that a FBT employee is eligible for out of state taxation."
- Effective From: When you add the Multi-State Threshold Taxation employee property, the effective-from date must include the pay run that you are committing. Keep the following in mind when entering effective dates:
- Dayforce uses effective dates to determine whether it should apply the threshold during the payroll calculation.
- The employee property must be effective during the pay period you're calculating.
- It isn’t possible to set a start date in the past to check whether the threshold was met in prior committed pay periods.
- Effective To: Optional end date for the multi-state threshold taxation property for the employee.
- Value: When you select Multi-State Threshold Taxation, the Value column is populated with a checkbox that is cleared, by default. You must select this checkbox.
Assign the Multi-State Threshold Taxation Property to Employees
Important: The best practice for paying employees who are tagged for threshold tracking is to combine all earnings on their normal check.
To assign the Multi-State Threshold Taxation employee property to an employee:
- Go to People, open the employee profile, and click Employment > Employee Properties.
- Click Add.
- In the Property drop-down list, select Multi-State Threshold Taxation.
- In the Effective From field, set a start date for the property.
- In the Value column, select the checkbox.
- Click Save.