When it comes to state and local tax withholdings for employees, where they live can affect what taxes they owe, and at what rates. It's important to have the correct information for each employee to ensure all tax obligations are being met.
How tax jurisdictions are identified
OnPay provides tax selections for each employee based on factors including:
- The physical address of where they work
- The physical address of where they live
Where they work
In the employee profile, hover over "Employment Options" to see the Worksite they're assigned to. If your company has multiple worksites, make sure every employee is assigned to the correct worksite.
Need to add or update a worksite?
Company Worksites can be added and updated in the Company menu, under "My Company".
Where they live
In the employee profile, hover over "Contact Information" to make sure their home address is correct. Click to add or change this address.
When typing an employee's address, a menu will drop down suggesting street addresses you may be typing. Always select an address from this list to ensure compliance with local tax obligations for each employee.
More about ensuring compliance when adding or updating addresses for employees and worksites→
Adding or updating state withholding details
In the employee profile, go to Personal, then Withholdings.
Under "State Withholding", you'll find options specific to the state or states where local taxes apply for this employee.
When an employee's worksite is in a different state than their residence, you'll see withholding details for each state. This is to ensure compliance with all applicable tax obligations.
Entering employee SOC codes (required)
The federal Standard Occupational Classification (SOC) coding system helps government agencies and private businesses compare occupational data using standardized job titles.
The state of Washington requires employers to report SOC codes for each employee when filing quarterly unemployment insurance reports. In order for OnPay to file these reports on your behalf, you must select an SOC code for each employee. If any employee's SOC code is missing, the state will reject the filing.
Under Withholdings for each employee in Washington, select the SOC code that best describes the employee's job from the list. You can also filter the list using key words.
You must enter an SOC code for every Washington employee in order to include them in a pay run. This is a required field.
More info about Washington SOC code requirements→
Entering workers' compensation rate code
The Department of L&I assigns Washington Workers' Compensation rates based on each employee's job type, so it's important that you enter a job type in the Tax Setup section of each employee's profile.
How to enter Washington Workers' Comp rates in employee profiles→
v7.24