Employee Earnings Distribution Overrides Card

The Employee Earnings Distribution Overrides card identifies every location where an individual employee works and the percentage of their time spent there.

For employees working in multiple locations, you may want to distribute their earnings across the appropriate jurisdictions. This can have an impact on the tax calculation if they're subject to different tax rates.

When running payroll for those employees, this card determines earnings for each and calculates taxes appropriately. You would commonly use it for consulting and salespeople who travel regularly.

You specify components at the state, county, and city levels and the percentage of earnings distribution for each. The combined percentages can't exceed 100%. If the total doesn't reach 100%, the payroll process allocates the remaining percentage to the employee's default work location.

For example: An employee works in four locations.

• Texas- the primary work location on the assignment

• San Jose, CA

• Los Angeles, CA

• Arizona

You would configure the Employee Earnings Distribution Overrides card to reflect the following distributions of 25%.

• San Jose, CA

• Los Angeles, CA

• Arizona

The remaining 25% would be automatically attributed to the primary Texas location.

Interactions with the Tax Withholding Card

By default, the Tax Withholding card automatically updates the values used when you make changes to an employee's:

• Resident address

• Work location

• Assignment

You may want to review your earnings distribution overrides if a location change has potentially changed the distribution.

Viewing the Card

To view or create an Employee Earnings Distribution Overrides card.

1. From My Client Groups, click Payroll.

2. Click Calculation Cards.

3. Search for and select the employee.

4. If the card already exists for this employee, select it.

   Otherwise, click Create and select Employee Earnings Distribution Overrides.

You must create a card for each employee payroll relationship.

Adding a Work State

To enter an alternate work state for the employee:

1. Start the Calculation Cards task.

2. In Calculation Card Overview, select Regional and click Create.

   Do not click Create in Calculation Components.

3. In the Add Calculation Component window, specify the state.

4. Click OK.

   The Calculation Components table adds a row for the state.

5. Select the new row in Calculation Components.

6. In Calculation Component Details, click Add Row.

7. In the Create Calculation Component Details window, select Employee Earnings Distribution and click OK.

8. Specify the percentage of time worked at the location, and click Save.

9. Repeat these steps to add any other states.

10. When finished, click Save and then Done.

Adding a Work County

You can't add a work county to the card if you haven't first added its parent state. To add a work county:

1. Start the Calculation Cards task.

2. Search for and select the person.

3. Select their Employee Earnings Distribution Overrides card.

4. In Calculation Card Overview, select the state for which you're adding the county and click Create.

   Do not click Create in Calculation Components.

5. In the Add Calculation Component window, select the county.

6. Click OK.

7. Repeat these steps to add any other counties.

8. When finished, click Save and then Done.

Adding a Work City

You can't add a work city to the card if you haven't first added its parent county. To add a work city:

1. Start the Calculation Cards task.

2. Search for and select the person.

3. Select their Employee Earnings Distribution Overrides card.

4. In Calculation Card Overview, select the county for which you're adding the city and click Create.

   Do not click Create in Calculation Components.

5. In the Add Calculation Component window, select the city.

6. Click OK.

7. Repeat these steps to add any other cities.

8. When finished, click Save and then Done.

Allocating Time Worked

Once you have created all required state, county, and city calculation components, you assign the percentages of time worked at each.

The percentage you assign to a parent node must be equal to or greater than the sum of the percentages you assign to its children.

The sum of all percentages doesn't have to equal 100%. Any remaining time is automatically attributed to the default location specified on the employee's assignment.

1. Start the Calculation Cards task.

2. Search for the person, and open their card for editing.

3. In Calculation Card Overview, select the row of the location for which you're specifying the time.

4. In Details, expand Employee Earnings Distribution.

5. Click Edit, and select Correct.

6. Specify the percentage of time worked at the location.

   The sum of all child nodes can't exceed the percentage of their parent node.

7. Click Save.

8. When finished, click Done.