Contents of the Manage Reciprocal State Taxes Screen

Use the fields and options to configure the Manage Reciprocal State Taxes screen.

Identification

Field Description
State

Enter, or click to select, the state code. The corresponding state name displays in the adjacent, non-editable field.

Out of State Services

Withholding Resident Employee Wages Based On

Use this group box to determine how the state withholds resident employee wages when the employee performs services out of state.

Field Description
Work State

Select this option if the withholding resident employee wages are based on the work state.

State of Residence

Select this option if the withholding resident employee wages are based on the resident state.

Both

Select this option if the withholding resident employee wages are based on both the work state and resident state.

Do not Withhold

Select this option if the withholding resident employee wages are not based on the work state or state of residence.

Credit for withholding paid to state where services are performed

Select this check box if the state gives credit for taxes paid to the state where the services are performed.

Withholding Nonresident Employee Wages Based On

Field Description
Work State

Select this option to indicate that the withholding non-resident employee wages are based on the work state.

State of Residence

Select this option to indicate that the withholding non-resident employee wages are based on resident state.

Both

Select this option if the withholding non-resident employee wages are based on both the work state and resident state.

Do not Withhold

Select this option to indicate that the withholding non-resident employee wages are not based on the work state or the state of residence.

Reciprocal State

Field Description
Reciprocal State

Enter, or click to select, the state code associated with the reciprocity state.

Reciprocal State Name

This non-editable field displays the corresponding state name.