Taxes for Multiple Locations

EBMS allows the user to calculate taxes based on where the labor was rendered. This option may calculate taxes on a portion of the timecard. For example, state or local taxes are often based on the location of the employee. The employee may have labored on a project in multiple localities within the same pay period. For example, a construction crew may spend the first two days of the pay period on a job site located within the state of Missouri and complete the pay week in the state of Illinois. This may require the payroll system to calculate Missouri and Illinois state taxes only on a portion of the pay check.

Complete the following steps to configure a payroll tax based on a location.

Go to Labor > Options and click on the Locations tab.
The locations record should include a general Country setting such as USA and the primary State/Province location of the business. Add any City, County, Zip locations that require specific tax calculations. Also Include any additional tax jurisdiction locations by clicking on the New button, as shown below:

The Location ID is created by the system and cannot be changed by the user.
Set the appropriate Applies to setting:

Select Country for any federal tax.
Select State for any state or provincial tax.
Select City, County, or Zip for any local tax.

Set the appropriate Country, State, and/or local setting and click OK.

Repeat for each tax Location.
Set the Location setting for each tax. Go to Labor > Taxes/Deductions and select the appropriate tax. Click on the Location tab.

Select the This applies to business locations or all locations option if this tax or deductions always applies, no matter what location the work is done.
Select the This applies only to employees residing (location matches employee record) in option if the tax is based on the location setting within the employee record.
Select the This applies only to work done (location matches timecard lines) in if the tax is based on the location of where the labor is rendered. Set the appropriate Applies to and location settings and click OK.

Set the Default Tax Location for each employee. Open the employee record (Labor > Workers from the main EBMS menu) and click on the Advanced tab. The Default Tax Location should reflect where the employee normally works.
Open an employees timecard by selecting Labor > Timecard Entry.
The Location column will default to the employees Default Tax Location in the employees Advanced tab. Make sure the Location column is not hidden. Review the Features > Column Appearance section from the main EBMS documentation.
The Location setting should be changed if the employee labor for this detail line is rendered in a different location than the previous line.

The Location setting within a timecard can be set from within the Job record if the job costing module is included in EBMS. Review the Jobs > Changing Job Information section from the Job Costing manual.