Employees → Employee Quick Hire → State/City Income Tax (Work)

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). Contact your Payroll Support Team if you need to add a Work Location to your account.

The fifth and sixth collapsible sections are related to State/City Income Tax.

💡 If the Work and Resident states are the same, you will set up their withholding in the next step under Residence after assigning the correct Work Location.

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

For example, when an employee lives and works in the same state, the option for the 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 will have different reciprocity rules. When employees work and live in separate states, the system will apply those laws and taxes accordingly.

This sample employee has the same resident state and work state. The fields will grey out as uneditable. Continue to the State/City Income Tax (Residence) section.

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

(Continue in State/City Income Tax [Residence])