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


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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. 

Best answer by KristenHanson84

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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3 replies

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  • Acumatica Employee
  • 65 replies
  • Answer
  • March 22, 2023

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.


Doug Johnson
Community Manager
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  • Acumatica VP, Product Management
  • 585 replies
  • April 19, 2023

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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