HQ States

HQ States is the all-company master file that holds state records used for payroll withholding, including reciprocal-state relationships.

Before you start

• Know the states where you operate and any reciprocal withholding agreements.

Steps

1. Open HQ States.
2. Open the main state record you are configuring.
3. On the Reciprocal States tab, list states with reciprocal agreements.
4. Complete state-specific withholding fields as required for payroll.

Notes

• Reciprocal states are checked when posting in Payroll Time Card Entry or Automatic Earnings. If the employee's resident state differs from the job state, the system checks for a reciprocal agreement. When one exists, the system uses the resident state as the tax state for withholding.
• Incorrect reciprocal setup causes wrong state withholding.