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Administrator Guide
Last Updated: 2023-06-23
Concept: Override Multistate Resident Withholding Rules (USA)

Concept: Override Multistate Resident Withholding Rules (USA)

Consider these options for configuring the override multistate resident withholding rule. The rule applies when a worker's resident state and work state don't have reciprocity.
Multistate Resident Rule - Calculate State
Multistate Resident Rule - Calculation Method
Result
True
Blank
Workday calculates wages and tax for the worker's resident state with no credit for the work state tax.
True
Resident State Tax - Work State Tax (if > 0)
Workday calculates wages and tax for the worker's resident state and reduces tax by crediting applicable work state tax.
True
Resident State Tax - Work State Tax (if > 0) / Report Work Wages Only
Workday calculates tax for the worker's resident state and reduces tax by crediting applicable work state tax. Workday doesn't calculate resident state wages.
Tax Calc (State-WH-Reciprocity): Work State Does Not Have Tax
Work State Does NOT Have Tax
Workday calculates wages and tax for the worker's resident state only if the work state doesn't have tax.
True
Work State Does NOT Have Tax / Report All Wages
Workday calculates wages for the worker's resident state. Workday calculates tax for the worker's resident state only if the work state doesn't have tax.