Multi State Payroll Accounting

[wvugurl26]

Is there a support number you can call? I'm sure you aren't the only one.

[jeffreymo]

Meant to comment previously. We’re multi-state but have never documented a multi-state assignment in the same pay period. Your solution of creating multiple checks is how we would handle it.

[jeffreymo]

Apr 11, 2019 11:56:04 GMT -5 deminmaine said:

Apr 11, 2019 9:22:05 GMT -5 jeffreymo said:

Meant to comment previously. We’re multi-state but have never documented a multi-state assignment in the same pay period. Your solution of creating multiple checks is how we would handle it.

Thank you jeffreymo  

May I ask what accounting/ payroll program you use?

I guess we can merge the two payroll records for the W-2s at the end of the year, but I am not yet sure what will occur with state filing, for us or the employees.  It's got to mean another return though.  SUI will be payable to the home state, but I am not sure Maine will recognize the wages paid to MA on the software.  Not that it matters, as they will be way above the state 12K ceiling.

We use Peoplesoft for HR and payroll.

You’ll need to withhold and file/pay for the new state. Depending on how you register they may also give you an unemployment account. You may have to file an unemployment return and provide documentation that the obligation was met in the home state - so no funds changing hands. However, if the new state has a higher wage base you may have to pay SUI on the difference.

The payroll software you use should be able to list 2 states on the W2. The employee will need to file a return with the new state and many factors will determine if they get any of the withholding back. Their home state could also count the wages as taxable so there is a chance for double taxation.

[sheilaincali]

Two years ago I switched to ADP for my payroll. Works so much better. We were on the old Sage Pro accounting system. It got to the point where I hated it. Constant updates, constant money grab. Then they announced they'd no longer service our version so we'd need to buy a new one, which would require a new server on our end. Basically they wanted about $80,000 to upgrade to their new SAGE version.

We switched to QuickBooks for the regular bookkeeping and ADP for the payroll. Saves me a ton of time. With ADP I have my payroll customized to work with all of the various certified payroll reporting that I have to do. Saves me several hours a week.

My husband works for a large corporation and his job superintendents jump from state to state- he says they use ADP too and haven't had any problems with it.

[sheilaincali]

My guys haven't worked in multiple states since I switched to ADP but the Hubs claims they don't have an issue with it at his company. I believe it's all on one check for the multi state people. I can ask him when he gets back- he's traveling this week.

I do the payroll in house through the ADP program. They handle the banking side of things and pay child support, taxes, do the W2's, new hire reporting, etc.

It's slightly convoluted but here's what I use:
I use their time and attendance option. That allows my guys to clock in and out using a mobile app. We do road construction so they are on multiple jobs some days and at multiple pay scales. I can go through the weekly time cards to correct any errors (wrong job, wrong classification, etc.)

Once I have verified the time cards are correct I process payroll for the week. Honestly that part takes about 5 minutes. I print my regular payroll reports (not the certified) and hit "accept".  They overnight me the paystubs (we do direct deposit) and I put them in the mail.  You can opt to have them emailed but I lose a lot of time to guys checking their emails and comparing wages, hours, etc.  So I mail them to their houses instead.

The next day (It takes about a day to get the info updated). I can upload my certified file into their certified system and print out all of my certified pay reports. They work the best with the WH347 report but they have a few options available. I have to input the data into the ASSHTO system that MNDOT uses for the reports that require ASSHTO but still the entire process saves me a TON of time.

I figure that between ADP over SAGE, the mobile app for the time cards and their certified payroll reports I probably saved myself 15 hours a week.

[jeffreymo]

Apr 12, 2019 6:14:13 GMT -5 deminmaine said:

Thanks again for the reply Jeffrey.  At a quick glance Peoplesoft looks like a nice complete HR program.  We are smaller, and use one software program for all payroll and accounting work, so HR falls under a different purview.  

I appreciate your comments above.  They reinforce what I understand, and it is reassuring to see we are on the right track.  My software does allow us to integrate the W-2, and that (presumably) incudes listing the two states on the form.  At least it is supposed to, the final proof will be in the printing come January 2020!  

Especially good to see regarding the SUI.  My understanding is that we will owe only in Maine, and I'm glad to see your concurrence, because some of the info out there is less than iron clad clear that this is the case.  If an employee were to file unemployment of course they would do so in their home state- that is where the "premiums" should be paid.  I see what you mean about a higher wage base, and I can see why a state with their hand out would feel that way, but I defer to my point above.  They are not liable to pay the benefit should the employee become unemployed.  We'll see how that shakes out- my state's wage base is 12K, and the other one is 15K.  Hmmm.

The worker is actually supposed to file for unemployment in the state that they work in.

[plugginaway22]

We do in house and use ADP, have employees in 3 different states, never an issue.