Employees primarily assigned to work in states with Convenience Of Employer (COE) regulations (for example, NY, CT, NE) have taxable wages for both the project location and the COE state. Payroll administrators can select the COE Project checkbox in Projects > Management to enable taxation for these states with COE regulations.
Before You Begin: To view the COE Project checkbox, select the Enable Convenience of Employee (COE) Taxation (US Only) checkbox in the Payroll section of the Properties tab in System Admin > Client Properties. Selecting this checkbox allows employees residing in a state that is different from where the employer is located so that they are subject to taxation in both states.
To enable COE for a project:
- Go to Projects.
- Select an existing top level or child project in the list, or create a project.
- Click the Details tab.
- In the General section, select an address in the Taxation Address drop-down list to specify the employee's primary residential address as the taxation address at the project level.
- Select the COE Project checkbox to enable taxable wages for both the project location and the COE state.
- Click Save.