When hiring someone new of any type (full-time, part-time, etc.) in Zenefits, assign them to a Work Location in the state where they will be physically working so that Zenefits can determine where they will be taxed. In most cases, they will be taxed in the same state as the Work Location, unless a reciprocal agreement exists between the home and work states.
To assign the correct Work Location, follow these rules:
- If the new hire will be working on-site at an official company office, assign the new hire to this location.
- If the new hire will not be working at an official company office (i.e., a remote worker who telecommutes), assign them to a Work Location with an address in the state where they'll be working. If the remote worker:
- works from home, select 'Remote Location (Worker’s Home Address)' from Work Location checkbox and select the home country. Zenefits will create and update the new work location automatically based on the individual's home address.
- works from an office with address that differs from their home address, a unique Work Location should be created for that office's location.
Do not assign workers to a work location if they do not physically work at that location, even if they report to a manager at that location. Learn more about work locations and taxes for remote workers.
If someone notices that their taxes are being withheld for the wrong state, first verify that their Work Location is correct.