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  • 1.  PR v2.2 Tax Locations

    Posted 03-04-2020 08:59
    Client established in corner of a state and has employees from two other states crossing back and forth to work.  She is asking about the significance of the Tax Location fields - Residence and work.  They have numerous employees that work in multiple state.  They could reside in IA and work in both NE and SD.  In employee set up, you only have two fields, one for residence and one for work.  What about the possibility of residing in one state and working in all three? 

    Also, what is the optimal way of setting up the tax profiles for the states?  One line for location type work and a second line for location type residence?  What about none?

    My inclination is to just match what the legacy PR tables were withholding but CFO is holding my feet to the fire for a more precise response.

    TIA

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    Jeff Schwenk
    FORMER 90M Board Member
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
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  • 2.  RE: PR v2.2 Tax Locations

    Posted 03-04-2020 10:52
    The client needs to tell you how they withhold in legacy.  I'm doing an upgrade for PA (UGH and Ugly!) where I set all tax profiles to work in PA and reside in their local county/borough, etc.  Tax is withheld based on Reside location.  However, client has also indicated that based on certain taxing rules, the employee may have to pay based on where they work. So I've created add'l tax profiles for those so tax is taken out based on the work location. 
    If in your case they tax the specific income tied to a state, then they would need a default tax profile and then change those profiles at the line level of payroll data entry which would be time consuming.  I'm guessing that based on legacy, they were not swapping them out and only withheld for one state (IA?) and it was up to employee to file/pay in NE & SD.  Your tax profiles could be:  Work NE, Reside IA and then you could check/uncheck which taxes get wihheld and then aother profile for Work SD, Reside IA and a third (default) could be IA Both.  Then run 3 separate payroll entries with the different profiles and see how the audit report comes out for taxation.  Do they want to get involved in paying to NE & SD?  New payroll does not force them to start withholding in a state they haven't withheld for before.
    N​

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    Nancy Hanson
    Blytheco LLC
    Eagan MN
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  • 3.  RE: PR v2.2 Tax Locations

    Posted 03-04-2020 15:43
    Good Golly, can't say how happy I am not having PR clients in OH and PA.  Three different possible states is bad enough.

    How did they have legacy?  One primary state and two supplemental ones.  Each employee was assigned and SUI state code.  Life was so simple back in the day.  For migrating, I set up tax profiles, assigned tax rules in earnings and deductions maintenance and started processing the last v2017 PR.  Trial and error in setting the E/D tax rules.  When we go nearly everyone matching the v2017 PR run (about 98%), we moved ahead.

    Very frustrated with the lack of detailed documentation after two years. Clients expect us to know it.

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    Jeff Schwenk
    FORMER 90M Board Member
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
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    Original Message


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