Creating paychecks for a multi-state employee

Eric Updated by Eric

This article is for data entering paychecks for employees who are subject to tax in multiple states. To set up an employer that has multi-state employees, see Setting up an employer with employees in multiple states.

A Payroll Grid row will need to be added for each state in which the employee is subject to tax.

  1. Open the Payroll Grid.
  2. Manually assign the paycheck to the appropriate state.
    Recalculating a paycheck will change the state to these state selections.
  3. Create a paycheck row for each state to allocate the wage/salary amount to the appropriate state and verify the state is correctly displaying in the State (WH/UI) column.
    The federal withholding should be carefully reviewed as allocating the gross paycheck into two different checks might result in smaller federal withholding. 
    The same wage cannot be taxed in more than one state.

How did we do?

Add paycheck item for calculating NY SDI

Setting up an employer with employees in multiple states