State Income Tax

State income tax is a tax imposed by individual U.S. states on the income earned within that state. While most states have an income tax, some, such as Florida, Texas, and Washington, do not. State income tax is deducted from an employee's pay when applicable. Each state has its own tax rates which can vary widely. States with income tax either use a flat rate where everyone pays the same percentage, or progressive rates where the rate increases with higher income levels.

State tax calculation can vary as mentioned above. For states that have a progressive rate the withholding form (equivalent of federal W-4) will commonly play a role in addition to frequency of pay and total amount. The information on the withholding form is specific to the employee (Single, Married, etc.).

The applicable state income taxes for a company will show in Console under the Taxes tab. Check will assign state income tax to employees based on the work location listed on the Employee Info tab. Check will automatically update the state's withholding tables anytime there is an update.

In the event that an employee has more than one work location, Check will surface the withholding forms for both states during the onboarding flow. When running payroll, the work location selected for pay will designate which state income tax is calculated for.

There are a lot of factors that can determine this answer. In general, an employee is taxed in the state they are performing the work. However, that is not necessarily always true. Please reach out to Check's Support team if there is ever a question.

All state income tax returns are posted within Console under Documents > Tax Documents. These will be posted by the most recent quarter.