When you open the Projects feature, select an existing child or top-level project from the list or create a project. When you click the Details tab, Dayforce shows the Taxation Address field in the General section.
By default, the Taxation Address drop-down list is cleared. When you expand this drop-down list, you can search for a list of locations, which are carried over from the list of locations in Org Setup > Organization > Location Addresses. The list of locations includes the system location for each state and any custom addresses that you or other users have added in the Location Addresses tab. The Taxation Address drop-down list is unavailable if you select the Use Resident Address For Taxation checkbox. You can select this checkbox to specify the employee’s primary residential address as the taxation address at the project level, rather than specifying one of the system locations in the Taxation Address drop-down list.
Important: When an employee has earnings for a project with a taxation address defined, Dayforce taxes the employee based on the project address rather than on the work assignment address.
However, the work assignment associated with the earnings is always used to determine the legal entity for paying the employee. While work assignments are tied to a legal entity, projects aren’t .
For example, say you record earnings against an employee’s primary work assignment, and you select a project that has a tax address configured. When you do this, Dayforce withholds applicable state and local income taxes from the employee based on the project selected and uses the primary work assignment to determine the legal entity for which to pay the employee.