Setting up Taxes for Employees who Work in Different States During a Pay Period

SuitePeople U.S. Payroll supports tax compliance for employees who work in different states during a pay period. NetSuite calculates the pertinent taxes for the jurisdiction where work is performed, as well as the employee’s primary office and home jurisdictions.

NetSuite uses the system-default settings to withhold taxes for jurisdictions other than the home and primary workplace jurisdictions. The default settings are single with no allowances.

To set up and use the multi-state taxation option:

Select the preference for the option:
1. Go to Setup > Other Setup > Set Up Payroll (Payroll Manager).
2. Check the Enable Multi-State Calculation box in the Paychecks group, and then click Save.
  
  When multi-state calculation is enabled, an editable Payroll Item Workplace field is added to the Earnings, Time, and Commissions subtabs for paychecks and bulk edit. The field is also added to time transactions. The Payroll Item Workplace field is not available for expense reimbursements.
Go to Transactions > Employees > Create Payroll, and create a payroll batch. For more information, see Creating a Payroll Batch.
Calculate the payroll batch. For more information, see Calculating a Payroll Batch.
Edit the individual paychecks, and select a Payroll Item Workplace for each payroll item in the Earnings, Time, and Commissions subtabs, as needed. The default is the workplace set on the employee record. For more information, see Editing an Individual Paycheck from a Payroll Batch.

The list for the Payroll Item Workplace field includes all of the workplaces you have configured for your company.

When you leave the Payroll Item Workplace field blank, it defaults to the workplace on the employee record when you save the change.

To set up and use the multi-state taxation option:

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