If you have employees who live in one state but works in another, it is called multi-state payroll.
When we are talking about multi-state payroll in the tax world, several considerations must be taken into account when determining what taxes to withhold from an employee’s paycheck. One of these is nexus. If a business has ‘nexus’, it means the business has a tax presence in that jurisdiction and is subject to that state's withholding laws.
You can find the nexus settings in Application Settings, and the ‘Home nexus is determined by’ dropdown.
There are two options to choose between for how your business determines nexus. They are:
1. Work locations per company – Select this option if nexus applies to work locations for some of your companies
2. All work locations from all companies – Select this option if nexus applies to each of the work locations from all of your companies