Multiple
State Withholdings
Many companies have employees who live outside the state in which they
work. For example, if your business is located in Chicago, you may have
an employee who lives in Illinois, Indiana, or Wisconsin. Sage 50 uses
the State field in the
Withholding Information table of the Maintain Employees/Sales Reps window
to take advantage of the possibilities of multi-state companies. Most
businesses are typically required to pay only the state unemployment tax
(SUI) in the state in which the company actually resides. Therefore, we
must adapt the state SUI ER formula to look at all state/localities
and not just the one in which the company resides.
There are three steps to this procedure:
- Modify the SUI formula to accept all states
- Modify the SUI employer payroll field to accept
all states
- Verify each employee's individual state withholding
information
Note: You must subscribe to one of the Sage Business Care plans to modify payroll formulas and to have withholdings calculated within Sage 50.