Employee Withholding Overview

You establish employee withholding information on the Payroll tab of the Employee Info Center. Employee withholding information can be calculated and tracked based solely on an employee's gross wages or based on the location where work is performed.

• Based solely on an employee's gross wages — To track work based solely on gross wages, turn off the Locale feature. Set the Locale Method field on the Payroll tab of the Employee Info Center to None.

• Based on the location where work is performed — To track work based on where work is performed, use the Payroll Tax Locale feature.

Before you establish any employee withholdings, you must establish firm-wide withholding codes in Payroll Withholding Setup.