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How workplaces work

A workplace decides which state and local taxes apply to an employee's pay. Every employee needs one to be paid.

What a workplace does

  • A workplace is a location where your employees work. Work done there is taxed by that state and locality.

  • An employee's home address still sets their resident taxes.

  • If you add a workplace in a new state, you may need to register with that state.

  • You add and manage workplaces on the Workplaces page.

Every employee needs a primary workplace

  • Give each employee a primary workplace before you review a payroll that includes them. Until you do, Freedom asks you to assign one before you can review that payroll.

  • Contractors don't need a workplace.

Remote employees

  • For an employee who works from home, use their home address as their workplace.

  • If a state agency or an insurer asks for your business address in that state, for example on a workers' compensation application, use that employee's home address.

Workplaces on a payroll

  • Each earning on a payroll needs the workplace where that work was done. The workplace decides which state and local taxes apply to the earning.

  • An employee can have a primary workplace and additional workplaces.

  • When you edit a payroll, check the "Workplace" on each earning before you approve it. Choose the workplace where the employee did that work.

Deactivating a workplace

  • Deactivate a workplace when no one works there anymore, or when you no longer want a tax presence in that state.

  • If it is your last active workplace in a state, deactivating it ends your company's tax presence in that state.

  • You can't deactivate a workplace while active or starting-soon employees are assigned to it. Remove it from their profiles first.

  • After you deactivate it, no one can be assigned there. Past payrolls still show it.

  • You can reactivate a workplace anytime.

Note: To add, deactivate or reactivate a workplace, see Manage workplaces.

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