A nonresident certificate is a form that indicates that an employee living in one state and working in another state that has a reciprocal agreement with their resident state has chosen to be exempt from withholding income tax in their work state.

Typically, an employee completes the nonresident certificate and files it with his or her employer, indicating that the employer should not withhold tax on wages earned in the work state.

The nonresident certificate settings can be found by navigating to the Employee > Employee Taxes > Work State Section > Nonresident certificate.

For employees who live and work in different states with a reciprocal agreement, the default setting is set to have a nonresident certificate in place.

If a nonresident certificate is not in place, you can uncheck the box and save it.

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