When configuring a Site or Location, you can specify the Jurisdiction and Tax Code to ensure labor costs and tax liabilities are captured accurately.

Jurisdiction: Geographic Tax Liability

The Jurisdiction field identifies the specific governmental authority (City, County, or State) where the work is performed.

• Split Liabilities: All hours worked under a specific Site/Location are automatically recorded to its assigned jurisdiction.
• Accuracy: This ensures that if employees move between different sites during a pay period, their tax liabilities are split correctly across the appropriate tax authorities.

Tax Code: Calculation Logic

The Tax Code identifies the specific rate or calculation method applied to the hours spent at that Site or Location. While the Jurisdiction tells the system where the money goes, the Tax Code tells it how much to calculate.

• Granular Costing: Tax Codes allow for high specificity. For example, you can apply different tax rates for hours spent within the same Site based on the Cost Type.
• Example: You may assign a specific Tax Code for On-Site Time versus Off-Site/Travel Time (different or exempt rate) within the same project location.

Payroll Data Visibility

You can audit and verify how hours are being allocated by navigating to the Payroll Period card.

• Details Tab: Use the Details tab to view a granular breakdown of payroll data. This view displays employee hours as they are allocated to specific Jurisdictions and Tax Codes based on their worked Site or Location.