Locations Guide

Locations

Location-Based Taxes

Your UKG Pro solution calculates taxes based on locations. With location-based taxes, a location is created and then associated with the applicable work-in state and local taxes based on that specific location.

When you assign the location code to an employee, those work-in state and local tax codes are automatically assigned to that employee. When you pay the employee for hours worked in that location, taxes are calculated based on the tax codes configured for that location.

Select Tax Locations , available in the UKG Video Gallery, for conceptual information about locations in UKG Pro Pay [View time 0:56 min:sec].

If the employee works in multiple locations in the same pay period, you can allocate the appropriate hours worked to each location. The employee's work-in state and local taxes are calculated separately for each location, based on the hours worked in each location.

Location-based taxes:

Ensure that taxable wages accumulate by work-in jurisdiction.
Ensure accurate taxation for your employees.
Require that each location is assigned a state, county, resident, and non-resident tax, if applicable.

Jurisdictional Reciprocity

Many companies have employees who either work in multiple state or local tax jurisdictions or employees who work in one tax jurisdiction and reside in another.

Some tax jurisdictions have reciprocal agreements to avoid double taxation. Other tax jurisdictions require the full tax withholding from an employee’s resident jurisdiction regardless of whether taxes are withheld in another jurisdiction. Still other tax jurisdictions require the full tax withholding from the employee’s resident jurisdiction only if the work-in jurisdiction has no tax withholding requirements. Your UKG Pro solution correctly calculates the employee’s state and local taxable earnings and tax amounts based on applicable reciprocal agreements between the employee’s work-in and resident tax jurisdictions.

Location Report Category

Location Report Categories is an optional business rule that enables locations to be grouped for reporting purposes. Such groupings can be used to identify plants with different locations in the same city, or manufacturing versus distribution facilities.

Location Report Categories Configuration

Field Descriptions

The Add/Change Locations page has several sections and fields to consider.

These sections include:

Details
Physical Address
Contact Information
Tax Information
Reporting Information

Add/Change Location - Details and Physical Address Sections

The field names and descriptions used in the Locations business rule are listed in the following table:


Field	Description
GL Segment	Used to designate the location as a general ledger cost center. This field defaults to the location code you entered in the Code field but can be modified.
Import Code	Used to specify a code you want to use when you import payroll information for this location. You can change the number by entering a new number over the existing value.
Reporting Category	Enables you to assign this location to a company location report category.
Worksite Reporting ID	Used if your company participates in the Multiple Worksite Report program. The program requires quarterly reporting of multiple worksite information. Multiple worksite reports are based on the worksite reporting identification number established for location codes. It is especially important for UKG Payment Services customers to enter the Worksite Reporting ID field. The worksite reporting ID is the Bureau of Labor Statistics (BLS) Reporting Unit Number (RUN) assigned to the worksite. For additional information about the Bureau of Labor Statistics (BLS), access the following website: U.S. Bureau of Labor Statistics - Multiple Worksite Report (MWR) Respondents
SUI Unit Code	Used if the company has two-character unit codes for special mailing of SUI claim information pre-approved through the state reporting agency.
Primary and Secondary Comment Code	This section is used for multi-worksite reporting. Two comment code fields, Primary and Secondary, are provided in the standardized file formats. Use the comments to explain any unusual changes in the economic data if they differ substantially from that previously reported, as instructed in the Electronic Data Reporting instructions provided by the Bureau of Labor Statistics (BLS). If you need to include comment codes, enter the codes in the Comment Code fields for the applicable location code prior to creating multiple worksite reports. For additional information about Electronic Data Reporting, access the following website: U.S. Bureau of Labor Statistics - Multiple Worksite Report (MWR) Respondents

The Tax Information section is used to indicate the applicable state and local tax codes that are associated with the location. When the location is assigned to the employee, the employee inherits the tax codes for the location. An employee can be taxed for multiple locations, if needed.

Note

If the Tax Information section does not appear for a specific location, then the location's state must be added as part of tax configuration or the location cannot be assigned in the Locations business rule.

Add a Location

To add a new location:

Navigation:Menu > System Configuration > Business Rules > Locations

Select Add.
Select the location's country.
Enter a unique code, description, and trade name. The trade name is the name your company uses to do business.
The General Ledger (GL) Segment is used to designate the location as a general ledger cost center.
If you will be importing time associated with this location during payroll processing, enter the time clock import code.
Select the appropriate reporting category, if applicable.
Enter the physical address and point of contact.
Important If you are adding a location in the United States and the Smart Tax Search feature is enabled, the Quick Address Search field displays. If the Smart Tax Search is enabled, the steps required to complete your location configuration will differ slightly. The Smart Tax Guide details how to configure a location with Smart Tax Search enabled.
From the Work-in State field, select the state in which this location is physically located. The employee’s state income taxes (SIT) for wages earned in this location will be based on this state.
Select the work-in county for the location. For most states, the work-in county list includes all counties in the state that have local jurisdictions that impose employee or employer taxes.
Note The following states have local taxes that are not specific to a county, so no county is available:
- Alabama
- Nevada
- New Hampshire
- New Jersey
- Montana
- New Mexico
- Oregon
- Washington
- Wyoming
Even though local taxes for these states are not tied to a county, local tax codes can be available for selection. Additionally, for the State of New York, there is a selection for “5 Boroughs” that includes local taxes imposed for the five boroughs of New York City.
The Work-in Tax-Resident Rate field enables you to select the local tax code applied to employees working in this location who also reside in the work-in county.
Note If no tax codes appear in a drop-down list, tax codes have not been configured for at least one of your companies.
The Work-In Tax Non-Resident Rate field enables you to select the local tax code applied to employees who do not reside in the work-in county, if applicable.
Then, select the Occupational, Workers’ Compensation, and Other tax codes applied to employees working in this location as applicable. The View Links and Rates button provides recommended Occupational, Workers’ Compensation and Other tax codes based on the work-in tax code selections.
If the tax code is configured for one of your component companies, you can assign the recommended tax right from this page by selecting the tax’s radio button and selecting OK. If the tax code is not added to one of your companies, the recommended tax displays, but when you select it and select OK, the tax code will not be populated in the Local Taxes section.
Note There are a few locations that will require special consideration when configuring local taxes. Those locations include:
- Jeffersontown, Kentucky
- Jefferson County, Alabama
- Colorado Local Jurisdictions (Aurora, Denver, Glendale, Greenwood, Sheridan)
- St. Louis, Missouri
- New Mexico
- Oregon
- Washington
If you need to add any of these locations, contact your Account Manager.
Select all of the companies to which the location applies.
Note Upon saving, if any of the tax codes assigned to the location are not attached to one of the selected companies, an error message displays.
The Reporting Information section is used if you submit multiple-worksite reporting to the Federal government. The Multiple Worksite Report is designed to collect information showing the distribution of the employment and wages of business establishments by industry and geographic area. Enter your Worksite Reporting ID and SUI Unit Code.
Prior to creating the quarterly multiple worksite report in Standard Reports, you can use the Primary and Secondary comment code fields to explain any unusual changes in the economic data if it differs substantially from what has been previously reported.
Select Save.

Assign Locations

Once you configure a location from the Locations business rule, you can assign the location to an employee.

From the employee’s record, locations can be added from the Taxes > Work Location page.

When hiring an employee, the location is added from the Jobs page.

Job page view with Location field highlighted

This document and all information contained herein are provided to you "AS IS" and UKG Inc. and its affiliates (collectively "UKG") make no representation or warranties with respect to the accuracy, reliability, or completeness of this document, and UKG specifically disclaims all warranties, including, but not limited to, implied warranties of merchantability and fitness for a particular purpose. The information in this document is subject to change without notice. The document and its content are confidential information of UKG and may not be disseminated to any third party. No part of this document or its content may be reproduced in any form or by any means or stored in a database or retrieval system without the prior written authorization of UKG. Nothing herein constitutes legal, tax, or other professional advice. All legal, tax, or other questions or concerns should be directed to your legal counsel, tax consultant, or other professional advisor. All company, organization, person, and event references are fictional. Any resemblance to actual companies, organizations, persons, and events is entirely coincidental.