Understanding the Setup Requirements for Employees Who Work in Multiple States

Many employers have employees who work in more than one state during a tax year. When you build year-end workfiles, you can specify the number of states (one or two) that the system should print on each W-2 form. If you select one state per form, the employee receives a W-2 for each state. If you print federal information on only one of the W-2s, you must specify the W-2 on which you want the system to print this information. The system uses the employee's base state to determine the W-2 on which to print federal information.

When you build the year-end workfile, the system determines the state to use as the base state: the employee's resident state or another state.