Employees → Taxes → State tab
💡 State Income Tax and State Withholding are two terms that can be used interchangeably.
Work Locations: Select where the employee will work to set up the state taxation. You will set up their State Income Tax under the Residence section if the work location and resident states are the same.
💡 Work Location drives Taxation! The employee is primarily taxed based on where the “work” was completed, not their home address.
State Income Tax (Residence)
Employees → Taxes → State tab
Resident Location: Or Home Address; this field auto-populates based on the employee’s zip code entered for their address. Do not edit this field unless discussed with your Payroll Support Team.
Employees that reside and work in the same state will have a State tax comparable to this view. Follow the state regulations for entering the employee's state tax filing, and Save.
The state/local info populates from the work location and the zip code. The options vary depending on the state, as different states have different filing statuses. Some states don’t have their own withholding form; those cases follow the federal W-4.
To obtain a copy of the state-specific withholding forms, visit each state’s Dept. of Revenue website. Begin your search with “state name - withholding form.”
States may have alternative tax calculations specific to their state. Check with your local agencies for up-to-date filing information and revised forms.
- Arizona, for example, utilizes its own form, A-4; the amount withheld is a percentage of taxable wages instead of dollar amounts.
Additional State Employee Taxes:
Depending on your organization’s location, your state might have more than one state tax. California residents, for example, contribute to the state disability fund through a payroll state tax separate from the State Income Tax. Oregon employees contribute to a statewide transit tax. The states of Texas and Florida don’t have any employee payroll taxes!
Different Types of State Taxes:
| State Disability Insurance (SDI) | Unemployment Training Tax | Workforce Training Fund |
| State Unemployment Insurance (SUI) | Medical Assistance | Family Leave |
| Workers Compensation | Workers Benefit Funds | Statewide Transit Tax |
(Continue in States with No Income Tax)