Tax Jurisdictions are the tax authorities your business has to answer to — the federal government, the states you operate in, and any counties or cities that collect income tax. Every employee's pay has to be assigned to the right jurisdictions so the correct taxes come out of each paycheck.
The page has two tabs: Jurisdictions (the list of tax authorities) and Tax Rates (the actual rates each one charges, and when those rates started or ended). One jurisdiction can carry many tax rates over time and several tax types.
Where to find Tax Jurisdictions
From the left sidebar choose HR & Payroll, then Tax Jurisdictions.
The Jurisdictions tab
This is the list of tax authorities. Each row shows:
| Column | What it shows |
|---|---|
| Name | The authority — e.g. "Texas," "Dallas County." |
| Level | One of Federal, State, County, or City. |
| State | The state it belongs to. |
| Parent | The authority above it (a county's parent is its state), so jurisdictions nest correctly. |
| State Tax? / Local Tax? | Whether the jurisdiction levies state-level and/or local income tax. |
Use Include Inactive to show jurisdictions you've retired.
The Tax Rates tab
Switch to Tax Rates to record the rates a jurisdiction charges. Because rates change over time, each rate carries an effective period — so you keep an accurate history and payroll always uses the rate that was in force on the pay date. A jurisdiction can have several tax types (state income, local income, and the various local taxes that apply in some areas).
Adding and editing
Click Add to create a jurisdiction (set its name, level, state, and parent) or, on the Tax Rates tab, to record a rate (its type, percentage, and effective dates). Edit by clicking into the grid, and right-click a row to Archive or Activate it.
Build jurisdictions top-down — add the state first, then its counties and cities — so each one has the right parent to nest under.
How Tax Jurisdictions connect to the rest of the app
- Payroll. Employees are assigned to jurisdictions, and the rates on file determine the taxes withheld on each paycheck.
- Compliance. Keeping rate history accurate means payroll always applies the rate that was correct for the period being paid.
Permissions
Viewing requires HR view access; adding, editing, and archiving require the manage/update permission.
Tips & best practices
- State before locals. Add the state first so counties and cities can point to it as their parent.
- Use effective dates. When a rate changes, add a new dated rate rather than overwriting the old one — that preserves accurate history.
- Only the jurisdictions you operate in. Keep the list to where you actually have employees and tax obligations.
Common questions
Why are there two tabs? Jurisdictions are the authorities; Tax Rates are what each one charges and when. Separating them lets one jurisdiction carry many rates over time.
What are the levels? Federal, State, County, and City — matching the layers of government that can tax payroll.
A rate changed mid-year — what do I do? Add a new rate with the new effective date. Payroll uses the rate in force on each pay date.
Related topics
- Payroll — where jurisdiction rates become withholdings.
- Pay Classifications — the work types behind each paid hour.
- Prevailing Wage & Union — certified-payroll rate schedules.