Earnings Distributions for the US

For employees working in multiple locations, you must make sure you attribute the correct amount of work to the appropriate jurisdictions. This can affect tax calculations if the jurisdictions have different tax rates.

You have multiple options on how to distribute earnings.

What you can do	How you do it
Tag the earnings	Use the Elements task.
Use the Employee Earnings Distribution Overrides card	Use the Calculations Card task.
Distribute earnings based on the jurisdiction	If there isn't an Employee Earnings Distribution Overrides card, the payroll process determines the percentage distribution for each, based on work hours.

For further info, see the following sections.

Tagged Earnings

Tagged earnings are earnings you associated to a locality through element entry. You can do this at the assignment level by manual entry through the Elements task. The input values are State, County, and City. You can also associate or tag an earning through time card entries. The payroll process uses the provided values in its calculations.

When you use tagged earnings, the input values already contain the exact jurisdiction. Therefore, the payroll process doesn't derive the jurisdictions nor the distributions.

Example of Using Tagged Earnings

An employee works in four locations. The employee's total work hours is 40 per week, 10 hours at each location. To distribute by tagged earnings, the earnings element must allow multiple entries in a payroll period. You define separate element entries for each of the employee's work locations, entering their hours and rate.

Location	Hours per week
Texas	10
San Jose, CA	10
Los Angeles, CA	10
Arizona	10

Employee Earnings Distribution Overrides Card

This calculation card lets you enter every location at which an individual employee may work. You can also specify the percentage of their time spent there.

For further info, see Employee Earnings Distribution Overrides Card in the Help Center.

Example of Using the Card

Consider the same employee from the previous example. In this case, you defined Texas as the primary work location on the employee's assignment. You would configure the Employee Earnings Distribution Overrides card to reflect distributions of 25% for San Jose, California; Los Angeles, California; and Arizona each. The remaining 25% is automatically attributed to the primary Texas location.

Location	Distribution
Texas (primary work location)	25
San Jose, CA	25
Los Angeles, CA	25
Arizona	25

Earnings Distribution by Jurisdiction

If there isn't an earnings distribution card, the payroll process determines the percentage distribution for each, based on work hours.

If the total percent of earnings distribution is less than 100%, the payroll process allocates the remaining percentage to the primary work location.

Example of Using Jurisdictions

Consider the same employee from the previous examples. They would have a single payroll relationship and three assignments, each working in Texas, California, and Arizona. Their distribution would be 10, 20, and 10 hours.

Jurisdiction	Hours	Distribution percentage
Texas (primary work location)	10	25
California	20	50
Arizona	10	25