Attributing wages and withholding tax for reciprocal state income tax

When you compute final payroll for employees who have a non-resident state tax withholding calculation, you can have Sage 100 Contractor calculate state tax withholding for wages the employee earned in the non-resident state as if they earned it in their home state, and attribute it to their home state.

To assign withholding state to the employee's home state:

1. In the employee record, inactivate the non-resident state income tax calculation (change the Active status to No or a blank).

2. In the 5-2-3 Compute Payroll window, from the new Options menu, select Use Reciprocal State Income Tax Withholding Rules.