Where to find the employee’s work location?
The employee profile on Greenshades Online includes a field for “Work Location”. This may be accessed by Greenshades Online -> Employees -> Employee List -> (select an employee) -> Employment -> Information.
What is the employee work location used for?
The employee’s Work Location field within Greenshades will be used for a variety of payroll tax calculations, most notably for state unemployment taxes (SUTA/SUI). When Greenshades creates state unemployment tax returns, this location determines where an employer is required to pay state unemployment taxes and which unemployment return contains the employee in question.
What to choose for the employee work location?
The US Department of Labor (DOL) provides guidance for determining the appropriate state for reporting unemployment taxes:
In general, the employee’s work location should be where their work is primarily performed. Occasional travel to other locations/states for short-term work or incidental services does not require a change to work location. If the employee moves permanently to a new site, then you should update the work location at that time.
If the employee primarily works from home, then their residence becomes the primary work location and should be set as the work location within Greenshades Online
If the employee regularly works in multiple locations, do not adjust the employee’s Work Location for each location. Instead, use the employee’s ‘Base of Operations’-- the location where the employee starts work, receives instructions, or performs essential job-related functions. If there is no base of operations, then report the location of ‘Direction and Control’—typically the employer’s headquarters, the location of the manager who supervises the employee, or the location of the staffing branch where the employee receives their assignments. You should change the profile Work Location only when the employee is assigned to a new Base of Operations or a new location is issuing their Direction and Control.
Why State Unemployment Tax location will sometimes differ from Income Tax location
Greenshades Payroll will assess most taxes, including income tax, based on the location where the work is performed. Greenshades uses the location on the individual hours and earnings records within payroll.
For employees that regularly work from multiple locations, tax will be withheld based on the locations on each of the individual earning lines. This approach is correct.
However, the Work Location on the employee’s profile (pictured at the top of this article) should be set to the location of their ‘Base of Operations’ or ‘Direction and Control’. Greenshades will calculate the employee’s State Unemployment tax according to that single profile location, regardless of the location of the individual earning. This is also correct.
In summary, while there is often overlap, most payroll taxes will be calculated based on the location where work is performed, while state unemployment taxes are based on the single work location specified on the employee profile.
For further information
You may reference the US Department of Labor’s UIPL No. 20-04, which provides detailed examples and interpretations of the localization of work provisions.