Contact your state agency or your CPA if you aren’t sure what taxes need apply to the employee. To set up an employee who works in multiple states, see How can I set up an employee that works in two different states?

1. Create the employee record

1. Click Maintain, Employees/Sales Reps.
2. Enter all pertinent information for the employee.
3. Click the Employee Fields tab.
4. For any taxes that the employee must pay that are outside of the state that they live in.
   • Uncheck Use Defaults
   • Click in the Formula column and manually select the formula that applies (for example: NYSUI)
5. Click Save.
6. Click Close.

2. Indicate if the tax applies to all states or localities

1. Go into the formulas for the taxes that you selected in Section 1, using NYSUI as an example.
2. Click File, Payroll Formulas, User-Maintained.
3. Select the NYSUI 25 formula.
4. In the Select a state field, scroll to the top and select All States.
5. Click Save.
6. Repeat step 3-5 for each tax that applies.
   
   
   • Don't modify Sage-maintained tax items, as the formula changes will be overwritten anytime a payroll update installs
   • Assigning a state income tax to an employee in a different state may fail due to inconsistent filing status options available for the respective states