Hello. Currently, when an employee lives in 1 state and works in another the payroll department runs a weekly report to identify who these employees are and payroll manually adds a 1 on the work state withholding deduction code, cert code field on PR13.1. Payroll has asked that this process be automated but I have a few questions and thought maybe you all could tell me how you handle it. Here are my questions:
Questions about automating adding a 1 in work state withholding deduction code cert code for employees with tax state <>work state:
1. The Cert Code is linked to a form being filled out by the employee and turned into the employer. Do we really want this to be an automatic process? We may not have a signed form for most employees. Does that matter?
2. Do we only need to be concerned about states that have reciprocal agreements? If so, then not ALL tax states that do not match work states in Lawson would need to have a Cert Code =1 on their work state withholding deduction code. Here are the states with reciprocal agreements that may impact us: KY, IN, TN, IL, MI, OH, WV,WI VI.
3. Do we need to be concerned about when the tax state and work state equal AND the work state withholding deduction code cert code =1 ? This could happen when an employee moves into the state where they work. Thank you for any help on this. Sarah