Cloud payroll State Tax Setup

State Tax Setup

Setting Up State Tax Information in CustomBooks™'s Cloud Payroll Module

Overview

In CustomBooks™'s Cloud Payroll module, it is crucial to set up state tax information for each state where your employees work. This ensures that CustomBooks™ can withhold and file taxes on your behalf accurately and on time.
Warning
Failure to complete all aspects of state registration in a timely manner can result in late fees, penalties, and blocked future payrolls.

Key Points

  1. Work Address Setup

    • Any work address associated with an employee must be set up in the Cloud Payroll module. This includes all physical locations where your employees perform their job duties. To learn more about adding work address locations or employees, please see the related knowledge base articles.  

  2. State Registration Requirements

    • Each state has different requirements for payroll tax registration. Generally, you will need to:
      • Obtain a state ID number.
      • Grant third-party access to CustomBooks™ so that we can manage tax filings on your behalf.

  3. Timeliness

    • Completing the state registration promptly is essential to avoid any interruptions in payroll processing and to prevent late fees and other penalties.

Example: Colorado State Tax Setup

Here is an example of how to set up state tax information for Colorado in the Cloud Payroll module.

Colorado Tax Requirements

Provide all registration numbers

  • Colorado Account Number (CAN)

  • Unemployment Insurance Account Number

  • Family Medical Leave Insurance (FAMLI) Account ID

  • Aurora Account Number


Confirm all tax rates

  • Unemployment Insurance Rate

  • Solvency Surcharge Rate

  • Support Surcharge Rate

  • FAMLI Employer Portion


Deposit Schedules

  1. Specify your filing frequency as issued during the registration process with the Colorado Department of Revenue (DOR).


Specific State Requirements

For detailed information about state-specific requirements, please visit this site.


By following the guidelines provided for each state, you can ensure smooth and compliant payroll processing within CustomBooks™'s Cloud Payroll module. If you have any questions or need further assistance, our support team is here to help.