Employees → Employee Wizard → Step 6

Remember the phrase Work Location drives Taxation. Assign the employee’s proper work location to drive the correct tax calculation for their state and local taxes (when applicable). Reach out to your Payroll Support Team if you need to add a Work Location to your account.

💡 If the Work and Resident states are the same, you will set up their withholding in the next step under Residence after assigning the correct Work Location.

For example, when an employee lives and works in the same state, the option for state will be listed as Residence (see below). If an employee lives in one state but works in another state, both Residence and Work states will be listed. Each state has different reciprocity rules; when employees work and live in separate states, the system will apply those laws and tax accordingly.

The Work Location field drives the new hire’s unemployment and state tax deductions. If your business has multiple work locations, always ensure that the correct work location is chosen. Selecting the incorrect work location can cause the wrong state taxes to apply.

Since this employee has the same resident state and work state, the fields will be greyed out as uneditable. Continue to the  State/City Income Tax (Residence) section.

Next. (Continue to Employee Wizard: Step 7, State/City Income Tax [Residence])