The purpose of this article is to review the steps to classify employees as Remote Workers and ensure all taxes are updated.

Employee Level Action:

The classification of Remote Workers is defined as an employee who works from home and is fully remote. Enabling Remote Worker and selecting the employee’s Work Location will base the employee and employer taxes off the employee’s resident location. Keep in mind: 

1. There needs to be at least one work location for each state that remote workers reside in.
2. This option is for employees who are fully remote and work from home 100% of the time, and is not used for employees who are hybrid.

The Remote Worker Indicator is located on one of two screens. 

1. Navigate to either Employee Management > Employee Maintenance >General or Employee Management > Employee Pay > Tax Information to classify an employee as a Remote Worker after the Company has been enabled as a company who has Remote Workers. 
2. When adding or hiring a new employee using the Quick Hire screen, the option to select and classify the employee as a Remote Worker is available. 

Once indicator is checked, if no Work Location displays, complete the New Tax Jurisdiction Request form, available on your isolved Client Landing page and Employdrive Support will add the new State location. 

Examples:

Remote Worker Indicator Unchecked, All available Work Locations Display 

Remote Worker Indicator Checked, Only Work Locations in Resident State Display

Remote Worker Indicator Checked and No Work Location available for Resident State, No Work Location Displays 

Client Authorization Action:

The second step in this process is to ensure any new local taxes have been authorized. If there are any unauthorized taxes for Remote Workers, there will be an error message displayed on the Payroll Processing screen and you will not be able to preview payroll.

The "Remote Workers – Unauthorized Taxes" tabs should be reviewed to see taxes that need to be set up. To view, Navigate to Client Management - Taxes - Remote Workers - Unauthorized Taxes. 

The Remote Workers – Unauthorized Taxes screen has two components. 

1. Work Location Discrepancies tab shows the employees with a discrepancy between their resident state and Work Location. These must be cleared up prior to processing payroll or taxes may not be calculated correctly. This can happen, for example, if the employee changes their address via self-service to a different state.
2. Unauthorized Taxes tab shows the local taxes that need to be added for the Legal Company. 

If there is a Work Location Discrepancy and no existing state location in isolved, please submit a "New Tax Jurisdiction Request Form" via the Client Landing Page, with applicable information. 

If any taxes are listed on the Unauthorized Taxes, please send an email to Support@employdrive.com and the team will authorize. 

Employdrive recommends reviewing these tabs prior to the time of payroll processing to avoid a delay in your ability to process payroll.