What are work locations?

In the context of payroll, a "work location" refers to the physical place where an employee performs their job duties. It is the specific geographic location where the employee's work is carried out, and it can be an important factor in determining various aspects of payroll, including taxation, compliance with labor laws, and the calculation of certain employment benefits.

The concept of a work location is relevant for various payroll-related considerations:

1. Taxation: Different jurisdictions (such as states or municipalities) may have their own tax rates and regulations. The work location of an employee can affect the withholding of income taxes, as employees are typically subject to the tax laws of the jurisdiction where they work.
2. Minimum Wage and Labor Laws: Labor laws and minimum wage regulations can vary by location. Employers must comply with the relevant laws of the work location, which may impact minimum wage requirements, overtime rules, and other employment-related regulations.
3. Benefits: Some employment benefits, such as commuter benefits or cost-of-living adjustments, may be based on the work location of an employee. Employers may need to consider these factors when offering benefits to their staff.
4. Remote Work: With the increasing prevalence of remote work, defining a work location can be more complex. Employers may need to determine whether an employee's home office or a remote work site qualifies as their official work location.
5. State Unemployment Insurance: Employers are often required to pay state unemployment insurance taxes based on the location where their employees work.
6. Local Taxes: In some cases, local taxes, in addition to state and federal taxes, may apply depending on the specific work location of employees.
7. Payroll Records: Accurate records of work locations are essential for payroll processing, tax reporting, and compliance with various regulations.

It's important for employers to maintain accurate records of their employees' work locations and stay informed about the tax and labor laws applicable to those locations. In cases of remote work or employees working in multiple locations, employers may need to consider various factors to determine the primary work location for payroll and compliance purposes. Properly addressing work locations in payroll is essential to ensure legal compliance and accurate compensation for employees.

Do employees have to be assigned to a work location before running payroll?

Yes. We cannot process payroll until the employer sets up at least one work location and all employees have been assigned to a work location. During employer onboarding it’s possible to designate a work location as a default work location which would default all workers to this location for simplicity.