Introducing Multi-State Payroll and Same Pay Cycle Tax Calculation

By Emily Burch Harris
August 7, 2023

Simplify Your Payroll Processing and Tax Calculations Across State Lines

Do you have employees who frequently travel across state lines within the same pay cycle? 

If so, you know the challenges of calculating tax withholdings for multiple states they’ve worked in. Processing separate payrolls and navigating various tax regulations can be time-consuming and complex.

That’s why we’re excited to introduce Fingercheck’s Multi-State Payroll and Same Pay Cycle Tax Calculation—a game-changer in simplifying payroll and taxes across state lines. With this new feature, you can relax while we automate the accurate withholding and payment of taxes, adhering to each state’s specific rules. 

With Fingercheck, everything is easily managed within the same payroll cycle, saving you valuable time while eliminating the risk of errors. And while some providers offer multi-state payroll, most don’t calculate taxes, especially within the same pay cycle.

What is a tax work location?

So, the tax work location is a physical address where employees perform their job duties is the tax work location (TWL). If you have multiple business locations where employees work, or remote employees working from a different state in which you have registered or will register for a state tax ID, then you can create a tax work location for each. 

But what about tax reciprocity? Currently, 16 states and Washington, D.C. have a reciprocal agreement for tax purposes, which makes it easier to process payroll. Reciprocal agreements allow residents of one state to work in another state but are taxed in their home states, not their employment states. Fingercheck provides this feature, and customers can easily select reciprocity in-app.

Easy solution for employees who work in multiple states 

The Multi-State Payroll and Same Pay Cycle Tax Calculation feature is designed for several scenarios where employees travel to multiple states to complete their jobs during the same pay period. 

Think about traveling nurses, construction crews and transportation employees. 

Imagine owning a construction business based in New York. You have an employee who works at a job site in Brooklyn and a job site in North Bergen, N.J.  That employee worked in 16 hours at the New York site and 24 hours at the New Jersey site. You need to withhold the taxes based on both of the work locations. When the hours are imported into Fingercheck Payroll, the Tax Work Location feature automatically allocates the employee’s taxes based on the hours worked in each state. 

Another example applies to traveling nurses who provide services across various states. Because nurses move job locations frequently, the payroll department faces challenges in calculating accurate taxes due to the different tax rules in each state.

If a nurse is assigned to work in New York for the first week of the month and then relocates to Maryland for the remainder of the three weeks, Fingercheck’s payroll system automatically computes the appropriate state taxes for the time spent in each state. This ensures the nurse’s paycheck is accurate, reflecting the specific tax obligations for both New York and Maryland.

Fingercheck’s Multi-State Payroll and Same Pay Cycle Tax Calculation feature allows you to process these types of payroll scenarios in the same cycle. 

How does this help my business?

A Bloomberg Tax survey found that over 66% of business owners say payroll is frustrating, complicated and confusing. If you add in the hassle of calculating taxes for multiple states, then that frustration only increases. And manually doing that calculation introduces the risk of error – and fines.

Now business owners can calculate taxes for multiple-state locations within the same payroll, streamlining the tax process. Multi-State Payroll and Same Pay Cycle Tax Calculation makes life easier for your payroll administrator. The tax setup process is more efficient. Administrators no longer need to manually calculate taxes for each location or figure end-of-quarter adjustments. 

Our multi-state payroll feature also allows you to calculate taxes for multiple locations within the same payroll. And you can automate your multi-state payroll processes, which saves you time and money.

Put simply, Fingercheck’s Multi-State Payroll and Same Pay Cycle Tax Calculation streamlines your tax process. Our feature:

  • Simplifies tax setup for businesses with employees who travel to work in different states
  • Improves the accuracy of tax calculations
  • Saves time and effort spent on manual tax calculation
  • Reciprocity makes it easier to file your taxes
  • Ensures accuracy and tax compliance 

As a business owner with locations or work sites in different states, you know how tax laws change. Fingercheck Payroll alerts you of changes then automates the adjustment to keep you in compliance, eliminating possible tax penalties.

How do I set it up?

Administrators can set up a Tax Work Location for an employee in a few minutes. Here’s how to do it:

TWL image 1

Step 1: In Fingercheck, in the company set up, under “Jobs,” add a new job or edit a current one and assign a “Tax Work Location” for the job(s) (above)


Step 2: Go to ‘Employee Profile’ > ‘Payroll’ > ‘Taxes’ and assign the appropriate tax work location to each employee working in multiple locations. (above)

Step 3: When employees clock in their hours, they select the specific job they are working on. The system calculates taxes based on the hours worked in each state. (above)

Step 4: Process payroll.

Note: If it’s not broken out, you can edit an employee’s check, select an earning, and assign the tax location for that specific earning, particularly if an employee has worked in more than one state during a pay period. For example, if employees travel to a different state for training and it’s a special circumstance, you would assign the tax work location in that instance.

Do you need help with payroll and taxes?

Automated payroll software saves time and money by putting the entire process on autopilot — from calculating taxes and deductions to preparing W-2 forms for employees at year-end.

Automated systems also reduce errors by providing step-by-step guidance through each task, ensuring accuracy from start to finish. Automated systems also help ensure compliance with federal, state and local laws, which gives business owners peace of mind.

That’s where Fingercheck Payroll helps you. Contact us today, so you can work smarter, not harder.

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