• ​​Employee residence state does not match the reciprocity table.
• Work state on check time records does not match the reciprocity table.
• Reciprocity table is missing residence or work state
• Wrong tax ID selected on the reciprocity table.
• Employee has an adjustment method of No tax, Exempt, or Replace
• Tax group or Tax ID not set up correctly.

Verify the Employee Setup:

1. From the Payroll Setup menu, select Employees.
2. Select the Employee and click on the Entry Info tab.
3. Verify the employee Residence state.
4. Click Taxes and verify the Adj Method is No Adjustment for the applicable taxes.

Verify the Reciprocity table:

1. From the Payroll Setup menu, select Taxes, Reciprocity.
2. Click Next and confirm that both the Residence and Work Place tax groups display a description.
   Note: If there is a reciprocity table where the tax group description is blank, that can cause other reciprocity tables to function incorrectly
   1. For any reciprocity tables with missing Residence and Work Place tax descriptions, delete all of the rows in those tables. This will delete the table.
   2. Set the table up again by clicking List and selecting the applicable tax groups.
3. Select the applicable Residence and Work Place tax groups.
   1. Confirm that the Tax ID column displays the tax that would normally calculate without reciprocity.
   2. Confirm that the Reciprocal Tax ID column displays the tax that would not calculate without reciprocity.

Verify the Tax Groups:

1. From the Setup menu, select Taxes, Tax Groups.
2. Select the applicable tax group and confirm that all applicable taxes are displayed.

Verify the Tax Setup:

1. From the Setup menu, select Taxes, Tax Rates.
2. Select the applicable tax rate and confirm that the tax is set up with the correct percent, formula, or table
   Note: State unemployment taxes will not calculate without a Percent or Formula.