Multi-state Employees

Industrial Strength Payroll can record and process payroll in 2 states simultaneously for any employee. Here is the way to set it up.

Please do NOT use this procedure for an employee who works in one state, and has SUTA accrue for a different state. Doing so will produce undesired results. Use Accruing SUTA for a different state instead.

Establish both states in the Client Master file for this Client.

Set Payroll State 1 of the employee Identification tab to one of the states, and Payroll State 2 to the other.

Certain operating parameters change for multi-state employees. Also some features are no longer available. Here are the rules used by Industrial Strength Payroll for multi-state employees.

Income labels 1-4 apply to Payroll State 1. Income labels 5-8 apply to Payroll State 2. The state abbreviation appears after the label and the labels are in 2 colors.

Reported Tips, Deferred Compensation, and Cafeteria Plans cannot be processed.

Locality #1 and Locality #2 always apply to Payroll State 1.

Cafeteria plans, fringe benefits, and deferred compensation plans are not available. Deductions that are designated as before tax are treated as ordinary deductions.