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Payroll state withholding under the Military Spouses Residency Relief Act

  • 23 March 2022
  • 5 replies
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We have a new payroll client that has one work location in the state of Maryland.  One employee’s spouse is an active military duty employee working in the state of Maryland but declaring Georgia as their state of residence.  I am trying to get Acumatica payroll to calculate Georgia withholding.  It wants to calculate Maryland.  Even if I put a Georgia employee address, it still does not calculate Georgia taxes.  From a quick google search, it looks like Georgia withholds based on the work state.  Does that mean the only way I can get Acumatica to calculate GA is to set up a Georgia work state which is just not a true statement.  Am I missing something?

 

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Best answer by shannonlandreth53 24 March 2022, 20:40

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Userlevel 3

I’m not sure what you mean by “work state”?

Acumatica uses the work locations to load applicable taxes.  You would need to add a work location for GA, then run tax maintenance under preferences to pull in the GA taxes.  Configure the GA taxes for GL accounts on that same screen.  You can then assign the GA location to the employee for processing. once the GA codes are assigned to the employee, you may have some additional configuration with those codes on the tax settings tab.

Thank you for the quick reply.  By work state I do mean work location.  The client’s objection to accomplishing this is that they do NOT have a work location in Georgia.  The only work location is the Maryland location.  They are concerned that there may be some other ramification of saying that they have a work location in Georgia because they do not.  I would expect that the tax engine would have some way to accomodate this exception for military.

 

Userlevel 3

I’m not aware of any other method to load these without the work locations.  You may want to open a case with tech support for guidance.  

Userlevel 3

I can understand the concern.  If we look at how the work location is described in the help, it doesn’t fall within the definition.  If you open a case and receive a work around, please come back and post it here.  This will be very helpful information for others in the community. 

 

Userlevel 1

@dmazzullo77 - you can take the work location off of that employee → update the tax maintence and update taxes and then either import them to the employee or assign taxes to employess.  Once this is done the GA taxes will be on the employee, at that time you can select on the Tax settings.  Add the work location back on then for the state of GA on the Tax settings, choose is a resident of the state or location and for MD select Employee is exempt from state withholding. 

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