Workplaces: How to Set Up and Manage Employee Work Locations #

Workplaces in the payroll system are essential for correctly managing unemployment taxes, income taxes, and compliance. This guide explains what a workplace is, why it matters, and how to manage them.

What is a Workplace? #

• A workplace is the physical or designated location where an employee performs their work.

• Correct workplace setup is crucial because:

– Unemployment taxes are based on the state where the employee works.

– Income taxes are generally based on the state where the employee lives.

• For remote employees or employees who move between states, it is critical to ensure the workplace is correctly updated in the system.

⚠️ Incorrect workplaces can lead to filing errors, refile requirements, or costly corrections.

Adding a New Workplace {audience: admin} #

1. Go to Settings → Company Settings → Workplaces.

1. Click the + Add Workplace button.

1. Enter the following information:

– Address

– City

– State

– ZIP code

– Country

1. Click Submit.

Tip: If you have multiple workplaces, each employee must be assigned to the correct workplace.

Assigning an Employee to a Workplace {audience: admin} #

1. Go to Team → Employee Name → Employment Details.

1. Select the correct workplace where the employee works.

1. Click Submit.

The system will notify you if additional state setup is required for withholding and unemployment. You may see a yellow square stating: “Payroll onboarding is incomplete. Please finish onboarding.”

Completing State Setup {audience: admin} #

1. Click the green onboarding button → Complete onboarding section → Tax setup.

1. Set up state withholding and unemployment as required.

– Not all states have withholding or unemployment (e.g., Florida, Texas).

– For states without automatic setup, you may need to create a state unemployment account or request Friday support for setup (service fee may apply).

Deactivating or Disabling Workplaces {audience: admin} #

• If a workplace is no longer in use, contact support before deactivating.

– Reason: Final state filings may be required for unemployment and income tax.

• Workplaces cannot be disabled if there are active employees assigned to them.

• To disable unused workplaces:

1. Go to Settings → Company Settings → Workplaces.

2. Click Disabled for the workplace.

Important: Assign employees to correct workplaces before disabling a workplace.

Key Considerations #

• Workplace setup affects state-level taxes, not just individual employees.

• Always ensure employees are assigned to the workplace where they perform work, not necessarily where they live.

• Updating workplaces after the quarter ends can complicate taxes and require re-filing.

FAQ #

Q1: Why does the workplace or work location matter for payroll?
Workplaces determine where unemployment taxes are paid and ensure proper state tax compliance. Incorrect workplaces can lead to filing errors.

Q2: Can an employee live in one state and work in another?
Yes. Unemployment taxes follow the work location; income taxes generally follow the residence. The workplace must reflect the actual work state.

Q3: How do I add a new workplace?
Go to Settings → Company Settings → Workplaces → + Add Workplace, then enter the address, city, state, ZIP, and country.

Q4: How do I assign an employee to a workplace?
Go to Team → Employee → Employment Details → Workplace dropdown → Select workplace → Submit.

Q5: Can I disable a workplace?
Yes, but only if no active employees are assigned. Always contact support if the workplace has been used to ensure final state filings are completed.

Q6: What if a workplace requires state setup?
The system will prompt you to complete onboarding for that state. Some states require separate unemployment or withholding accounts; Friday support can assist for a service fee.

Q7: What happens if I have a remote employee in a different state?
You must set up a workplace in the employee’s work state. This ensures proper tax withholding and unemployment reporting.

This guide ensures admins can correctly set up, assign, and manage workplaces to maintain payroll compliance and avoid costly mistakes.