- Employee has default state tax code defined, Cards-Payroll-Tax Information (in this example, MO)
- Employee has pay code transactions entered (Transactions-Payroll-Transaction Entry) with state tax codes for another state only (in this example, IL)
- Employee has benefit transactions entered (Transactions-Payroll-Transaction Entry) that are state taxable (Cards-Payroll-Benefits)
Also, if you change the employee's default state tax code (Cards-Payroll-Tax Information) to IL, then there would be no error either.
I know this is not the most common scenario since most employees have wages that are only taxed in a single state. But I work with several organizations who need to tax specific wages in specific states for employees. I will update you all when I get more information from Microsoft on additional workarounds and/or a fix.
Christina Phillips is a Microsoft Certified Trainer and Dynamics GP Certified Professional. She is a supervising consultant with BKD Technologies, providing training, support, and project management services to new and existing Microsoft Dynamics customers. This blog represents her views only, not those of her employer.