Employees → Employee Wizard → Step 4

Remember the phrase Work Location drives Taxation. Assign the employee’s proper work location to drive the correct tax calculation for their state and local taxes (when applicable). Reach out to your Payroll Support Team if you need to add a Work Location to your account.

If the work and resident states are the same, you will set up their withholding in the next step under Residence.

The Heartland Payroll system will generate the appropriate tax options for the employee based on the work location and the employee’s resident location (zip code). 

For example, when an employee lives and works in the same state, the option for state will be listed as Residence (see below). If an employee lives in one state but works in another state, both Residence and Work states will be listed. Each state has different reciprocity rules; when employees work and live in separate states, the system will apply those laws and tax accordingly.

The Work Location field drives the new hire’s Unemployment and State tax deductions. If your business has multiple work locations, always ensure that the correct work location is chosen. Selecting the incorrect work location can cause the wrong State and Unemployment taxes to apply.

Complete the employee’s state tax filing information as it is on their State Withholding Form. These forms vary per state and can be found online on the state’s official website. Resident Location will automatically populate based on the employee’s Zip Code in Step 1.

Next. (Continue in Step 5: State/City Income Tax [Residence])