Set up Payroll to use a new state

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

1. Check with the state and local tax authorities for required state, local tax, and reciprocal agreements.
2. Confirm you have your Employer Identification Number (EIN).
3. Confirm you set up the Misc Tax Code fields, if needed.

Set up taxes and fringes

1. Confirm you have the most recent tax file update provided by Sage.
2. Set up any local taxes as applicable.
3. Set up the WC Fringe table for the new state (Setup, Fringes, Table).
4. 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:

1. Mark the Use employee work state / local box appropriately.
2. Select the WC state field as needed for each applicable non-job-costed employee (Setup, Employees, Entry Info tab).
3. 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)

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