Managing State Tax for Remote Employees

Managing State Tax for Remote Employees

Remote and hybrid employees often work in a different state than the employer's headquarters. State tax withholding should follow where the employee performs work, and the employee's work location in BerniePortal must stay accurate.

The Basic Rule

Withhold state taxes based on the state where the employee performs work — not only the state where the business is headquartered.

As an employer you typically need to:
  • Hold state tax IDs in each state where employees perform work (see State Tax Setup and State Tax IDs)
  • Keep each employee's address and work-address settings current in the employee profile

Updating Work Location

  1. Open the employee's profile and go to contact information.
  2. Update Street Address, City, State, and Zip as needed.
  3. Set Use Personal Address as Work Address? correctly. Choosing Yes - This affects tax and billing information uses the personal address as the work address for tax and billing.
  4. Select SAVE.
  5. Confirm with Employer Success that your company has the required state tax IDs for the work state.

When the Wrong State Was Withheld

Email help@bernieportal.com as soon as possible and include:
  • Employee name and ID
  • Check dates with incorrect withholding
  • The state where tax should have been withheld

How Corrections Are Processed

Employer Success confirms which path applies before corrections run.

Disclaimer: BerniePortal provides payroll processing services and general information related to payroll administration. This article is for general reference only and does not constitute legal, tax, or financial advice.

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