FAQs for Tax Levels of Service in Zenefits Payroll

Zenefits offers two levels of service when it comes to your taxes:

In Full Service, Zenefits calculates, collects, remits and files taxes for you in the appropriate jurisdiction. For Full Service, you must provide Zenefits with the necessary information to ensure you are set up properly. Federal, municipal, and local jurisdictions will always be Full Service.

In Calculate Only, Zenefits will calculate any employee/employer taxes related to a jurisdiction and display this amount in your quarterly tax package. With Calculate Only, Zenefits will not withdraw funds for the calculated taxes, remit the calculated tax amounts, file tax returns, or resolve notices for the respective tax agency. In the event that Zenefits receives any communication from the jurisdiction in a Calculate Only status, Zenefits will forward such communication for you to address directly. Calculate Only is only available for state-level jurisdictions.

If your jurisdiction includes employee taxes, your employees will have their calculated taxes deducted from their pay for the Calculate Only jurisdiction and these funds will remain in your company’s bank account. Your company will then be responsible for remitting all taxes and associated tax returns to the proper tax agency.

Note: If you actively run payroll with Zenefits, but we are missing information such as State Tax IDs, access codes, Unemployment Insurance (UI) rates, Third-Party Administrator information, or you have requested that we not file taxes for you, then Zenefits will update the level of service for that jurisdiction to Calculate Only.

To view your level of service for your Zenefits Payroll tax filing, you must first log in to Payroll and navigate to the Tax Info page under Settings. Next to each state you will see either the "Full Service" or "Calculate Only" labels.

During implementation, all state and federal tax jurisdictions will default to Calculate Only. Once all necessary information has been added into Zenefits and validated by the Zenefits Tax team, the service level for each applicable jurisdiction will be moved to Full Service.

Any time an employee is hired, or a work location is added, in a new state, new applicable tax jurisdictions will generate. These will also default to Calculate Only until information is added, Zenefits Customer Care is contacted, and the Zenefits tax team is able to validate the information entered and move the jurisdiction to Full Service.

To activate the Full Service option, please fill in all of the required tax information per agency.  You can do so within your Payroll Settings under Tax info.  Be sure to double check all of the information carefully as this affects your taxes. 

If you have previously filed or paid taxes in the state, please provide proof of filings and payments for this year's prior quarters.

Then contact Zenefits Customer Care to review and let you know when you're good to go. 

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