Out-of-State Processing in HRMS

In addition to collecting out of state taxes through a Recurring Payments/Deductions (0014) infotype record using one of the established out of state wage types, there are other requirements necessary to report another state’s taxes on an employee’s W-2.

Tax ID Numbers Configured Into HRMS

Each agency must work directly with any state they collect out of state taxes for to attain a Tax ID number. The Tax ID number is unique to your agency and the state your employee lives or works in. The Tax ID must be provided to OFM to be configured into HRMS. This process must be completed to reflect another state tax on an employee’s W‐2. The deadline for providing the Tax ID number to OFM is communicated annually through GovDelivery during year‐end processing. Within these communications, Excel files are provided listing agencies with Tax ID numbers already configured within HRMS. Agencies should review all employees that have withholding taxes from another state and compare the states to the spreadsheet each year.

You may request to add new Tax ID numbers to HRMS by emailing the completed Employer State ID Form to HeretoHelp@ofm.wa.gov. It is not necessary to wait until year-end to take this action when you have a newly established State ID number.

Manual Adjustments to Account for Other State Taxes

Once your agency’s Tax ID number has been configured within HRMS, a manual year‐to‐date adjustment is required for other state taxes to appear on the employee’s W2. In addition to communications from OFM, the process and subsequent deadlines can be found by checking Year End Activities each year as year-end approaches.

If a deadline is missed, please follow these steps depending on the status of your agency's Tax ID number.

 If your agency has a Tax ID Number configured into HRMS:

1. Complete the manual adjustment

2. Complete a W-2C

If your agency does not have a Tax ID Number configured into HRMS:

1. Complete a Print Copy of the employee’s W-2.

2. Manually type or write the information into Box 1.

Electronic Payments to Other States

The focus for electronic payments to other states will be limited to the states we are automating in HRMS. All other vendor records related to the out of state wage types will be set up to produce a warrant. Agencies are responsible for mailing the warrant with required state documentation such as a payment coupon or payment voucher.