EPY: VA Tax Does Not Withhold When Employee Lives In VA And Works In CA, Due To Incorrect State Tax Reciprocity. (Doc ID 3026970.1)

Last updated on NOVEMBER 25, 2024

Applies to:

Symptoms

VA residents  working in CA are not being taxed in VA.
Based on the Virginia site VA tax should be withheld:

https://www.tax.virginia.gov/credit-for-taxes-paid-to-another-state

Steps to reproduce the issue:

1. Navigate to Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data and verify the employee.

          State: VA - Resident checked

          State: CA - UI Jurisdiction checked

2. Navigate to Payroll for North America > Employee Pay Data USA > Tax Information > Update Tax Distribution.

    Employee works in CA with 100%

3. Navigate to Payroll for North America > Payroll Processing USA > Create Online Checks.

    Select the employee and calculate a paycheck.

    Review the tax results: only CA has been taxed.

Changes

Cause

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