1. Go to Payroll, Setup, Payroll Options.
   • Enable Allow Multiple Tax Profiles in Data Entry on the Additional tab.
2. Go to Payroll, Setup, Tax Profile Maintenance.
   • Create the necessary tax profiles.
   • Each profile must have both a Work and Residence location.
   • Create a profile for each work/residence combination needed for multi-state employees.
3. Go to Payroll, Main, Employee Maintenance.
   • Select the first multi-state employee.
   • Go to the Taxes tab.
   • Set each tax profile you’re using as the Default Tax Profile for payroll entries. Do this once for each profile.
   • Leave the desired tax profile set as the actual default when finished.
   • This step ensures you’re setting the correct filing status and tax calculation settings for each locality.
4. Go to Payroll, Main, Payroll Data Entry.
   • Create a payroll entry for the employee.
   • Enter a line of earnings.
   • Highlight/select the line.
   • Set the appropriate Tax Profile Code in the secondary grid below the lines of earnings and deductions.
   • Tax profiles set as the Default Tax Profile for the employee (step 3) will be available to choose.

 NOTE: Setting each tax profile as default once is necessary for accurate tax calculations. 

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