Work Tax Area
Use these procedures to create or maintain the tax area based on the employee’s work location. Work tax area is used to identify the tax area and tax authorities that are applicable to the employee based on where they are working.
Washington, Oregon, and Idaho are the only tax areas configured in HRMS.
- Use Oregon or Idaho work tax areas for employees working in Oregon or Idaho.
- Use Washington work tax area for employees living in Oregon and Idaho and working in Washington.
- An active Work Tax Area (0208) infotype record is not needed for employees living and working in Washington or another state outside of Oregon or Idaho.
Refer to the Out-of-State Employee Coding Guide and HRMS Data Definitions Resource Guide for more information on which taxes are controlled by this infotype.
If an employee transfers to a different agency, separates from state service, or stops working in Oregon or Idaho, an out-of-state Work Tax Area record must be delimited by the losing agency. Follow the Additional Steps for Out-of-State Employees – End Out-of-State Employee user procedure for more information.
The only exception is if the gaining agency has communicated to the losing agency that the employee will continue working out-of-state and the gaining agency is fully configured for the applicable OOS taxes and has requested the OOS tax infotype records remain active.
Agencies will not be able to save an Oregon or Idaho tax area unless they have completed the Additional Steps for Out-of-State Employees – Set Up Tax Company for OOS Tax Processing procedure first.
When updating a tax area or allocation within the Work Tax Area (0208) infotype, combined allocation percentages cannot be greater than 100%. Avoid errors due to over-allocated percentages by using the Work Tax Area - Change Existing Record procedure to delimit any active records before attempting to create a new one.
A work tax area override can be entered in CATS. An override may be necessary when the employee works in a different tax area for a portion of a pay period and entering an allocation split on the employee’s Work Tax Area (0208) record is not desired. Refer to Additional Steps for Out-of-State Employees – CATS Work Tax Area Override user procedure for more information.