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Payroll - Additional state tax withheld but employee did not work in that State for the additional tax

  • 28 February 2023
  • 3 replies
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In the case where a client has employees working in multiple states, some employees have additional state tax withheld. If an employee works in MO and KS and has additional tax of $10 for KS and does not work in KS that week, Acumatica still withholds the $10 additional tax for KS. The only way around it is to update the Employee Payroll Settings and remove the $10 additional tax from KS for that week and then put it back again for the next paycheck. 

This involves a lot of intervention to prevent this and then remembering to go back and update the tax settings after generating payroll for those individuals. We need a way to have Acumatica not include the additional tax when they are not working in the State with the additional tax. 

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Best answer by KristenHanson84 23 March 2023, 00:43

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The issue with the Tax Engine Web Service that caused this problem has been resolved.  Update Taxes on Tax Maintenance (PR208000), and Additional Taxes will calculate correctly.

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I converted this from an idea to a question. @KristenHanson84 thanks for the update.

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Can someone verify if this issue has been resolved. I have updated taxes and it is still calculating the additional tax for a state where they did not work.

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