Configure US State Tax Information for Employees

Refer to state requirements for using exemptions.

To configure US state tax information:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. In the State Tax Info section, click Add.
3. In the Effective From field, enter the date that tax definition takes effect.
4. (Optional) In the Effective To field, enter the date that the tax definition expires.
5. In the State drop-down list, select the employee's state.
6. Select the Exempt Tax Only, Update Wages checkbox to apply the exemption to state tax, but to track the taxable wages for informational purposes.
7. In the State Filing Status drop-down list, select the employee's status. The options displayed vary from state to state.
8. Select the Lock In checkbox to lock the configuration so that the employee cannot make any further changes by submitting a W-4 form.
9. (Optional) Complete the fields in the Details subsection to specify any additional amounts that will be withheld from the employee’s salary and any exemptions that the employee will claim.
10. Click Save.

Note: When you add a record to the State Tax info section, the application automatically end-dates the Effective To record with the prior dated record one day earlier than the new Effective Date. For example, if you add a record with an Effective From date of 8/16/2020, the application enters an Effective To date of 8/15/2020 on the prior record.