Changing state withholding for multiple states

Follow these instructions to change withholding for state taxes only if you turned on withholding for multiple states (you selected the > Setup > Company > Preferences > Payroll tab > Allow state taxes from multiple states on one paycheck check box). Otherwise, see changing a tax.

Make changes, as needed:

Turn off automatic reciprocal state withholding

Change the automatic reciprocal state withholding

Change an employee's state withholding

Change the work state identified for a project or phase

To change information about the tax, see Changing a tax.

Turn off automatic reciprocal state withholding

  1. From > Setup menu, click Company > Preferences.
  2. Click the Payroll tab.
  3. Clear the SWH automatic reciprocity calculations check box.
  4. Click Save.
  5. Review the setup for each employee to ensure that you have identified state withholding for the employee. For complete instructions, see Step 4 of Setting up state withholding for multiple states.

Change the automatic reciprocal state withholding

  1. From > Setup menu, click Company > Preferences.
  2. Click the Payroll tab.
  3. In the Reciprocal State Withholding (SWH) fields, add, change, or delete states, as needed.
  4. Click Save.

Change an employee's state withholding

  1. From the > Setup menu, click Employees.
  2. Select the employee whose withholding you need to change, and click Edit.
  3. Click the Payroll Taxes tab.
  4. To no longer withhold the tax for the employee, click a field in the row for the tax you want to delete and click Delete.

To change withholding for the tax, change the following fields, as needed:

Field

Description
Home state

The state you entered as the Home State on the Payroll tab in > Setup > Company > Preferences automatically appears here.

If this employee lives in a different state, select that state instead.

Note: You can select the No State option for a temporary employee on whom you want to withhold no taxes. You then select the Do not withhold option for the federal and state filing status fields.
Default work state The state you want to withhold taxes from when an employee enters time to a project or phase, but you did not assign a state to that project or phase.

State Taxes table:

In this table, complete one row for each state where the employee works (including the state where the employee is a resident).
State A state where you need to withhold taxes
SWH

This check box appears only if you did not select the > Setup > Company > Preferences > Payroll Taxes Tab > Automatic SWH reciprocity calculations check box.

To withhold state tax for the state on this row, select this check box.
SDI

To withhold state disability insurance for the state on this row, select the check box.

You can withhold state disability insurance for only one state.
SUI

To withhold state unemployment for the state on this row, select the check box.

You can withhold state unemployment insurance for only one state.
Status

The filing status that the employee entered on the state withholding form for the state listed on this row

If you select Percent of Taxable, be sure to enter the percent in the Amount field.
Exemptions The number of exemptions that the employee entered on the state withholding form for the state listed on this row
Additional SWH The amount of any additional state withholding that the employee entered on the state withholding form for the state listed on this row

State option

Code

Amount

untitled check box

These fields are available only if the state where the employee is paying income tax that requires a special code.

The State Option field describes the special tax information needed.

Change the Code and Amount fields and select or clear the untitled check box, as needed, to enter the required information for the tax. Refer to your state tax publication for more information on these special requirements.

States and codes are listed below:

  • Arizona: Percent of federal withholding
  • Arkansas: Arkansas low income
  • California: Additional allowances
  • Georgia: Marital allowances; enter 0, 1, or 2 when the state filing status is Married filing jointly.
  • Illinois: Number of dependents
  • Indiana: Number of dependents
  • Louisiana: Number of dependents
  • Massachusetts: Blind exemptions
  • Mississippi: Dual income exemptions
  1. Click Save.

Change the work state identified for the project or phase

When employees enter time, Ajera assigns that time to the applicable state and then does the state withholding for that state on the employee's paycheck. You identify the state where employees perform work by entering it for the project or phase.

If you do not set up state withholding for a project or phase, Ajera uses the state you entered for the employee in the > Setup > Employees > Payroll Taxes tab > Default Work State field.

  1. From the > Manage menu, click Project Command Center.
  2. Select the project from the project list.
  3. To change only a phase of the project, click the phase under the project in the project tree on the left of the window.
  4. On the Project Info tab > General subtab, add, change, or delete information in the following fields in the Payroll Taxes area, as needed. When employees enter time for this project, Ajera uses these fields to apply the correct state or local tax withholding to their paychecks.

For

Do this

State

Change the state where work on the project or project is performed.

If you do not enter a state for the phase, Ajera uses the state you entered for the project. If you do not enter a state for the project, Ajera uses the state you entered in the > Setup > Employees > Payroll Taxes tab > Default Work State field.

Local tax

If needed, change the local payroll tax applicable for work on the project.

A tax is available only if you set it up as location-based ( > Setup > Company > Payroll Setup > Taxes >Type field with the Local option selected > Calculation Method field with the Percent of Taxable option selected, and the Taxable Type field with Location Based selected).  
  1. Click Save.