Payroll Tax Maintenance: What Constitutes a Tax to Show on a Paycheck?

Thanks. I thought it may be a bug but wanted to check first.

Hello, 

The tax codes are based on the employee’s home location and work location along with the settings selected in Tax Settings. If an employee has a work location or home location as New Mexico it will pull in the tax. However there are settings to control which is used for SUTA and which for income tax. If you only file SUTA in one state, then go to Tax Maintenance>Tax Settings> Base of Operations State and enter the value for the state that your company files in (1st screenshot). You can deselect the Allow Employee Override so it cannot be changed at the employee level. 

Then also, for the employee(s) who are associated with the New Mexico taxes, go to their Employee Payroll Settings and Tax Settings Tab. Be sure that the state they are a resident of has Employee is a Resident of the State or Location marked. Also on the Taxes tab of the Employee Payroll Settings, be sure to look at the state tax code for where they live. Some states, especially if there are jurisdictional taxes, have another box to mark if they are a resident there. This will allow the system to know which is home vs worked state for income tax. 

Let me know if you have additional questions.