This is an overview of the process used to set up Payroll to calculate taxes for a new state.

Verify you have your tax information

• Check with the state and local tax authorities for required state, local tax, and reciprocal agreements
• Confirm you have your Employer Identification Number (EIN)
• Which states use the Misc Tax Code fields in Payroll? (Employee Setup - State window)

 NOTE: Most states apply all other states' SUI wages when determining if the employee has met the limit for SUI tax. For this reason, SUI taxes may not calculate for employees working in the new state.

Set up taxes and fringes

• Confirm you have the most recent tax file update provided by Sage
• Set up any local taxes as applicable
• Set up the WC Fringe table for the new state (Setup, Fringes, Table)
• Enter the tax rate and wage limit for any applicable SUI taxes

Set up employees

Use the employee state

For employees who won't do on-site labor, like outside sales, complete the following setup:

• Mark the Use employee work state / local box appropriately
• Select the WC state field as needed for each applicable non-job-costed employee (Setup, Employees, Entry Info tab)
• Verify their state filing status is correct

Use the job state

To have the WC state follow the job, verify the WC State is blank for the employee (Setup, Employees, Entry Info tab).

Confirm you clear the Use employee work state / local box (Setup, Employees, Entry Info tab).

Designate the job work state

Verify you assign the correct work state to the job in Job Cost (Setup, Jobs, Scope and PR tab, State)

How do I set up Local ACT 32 Taxes for Pennsylvania?

How do I set up tax reciprocity between two states?

Why did the State Unemployment Tax not calculate? (met the limit in other states)

How do I set up Philadelphia Resident and Nonresident local taxes?

Set up bonus or supplemental wages for specific tax rates