Company not setup for Tax error message

How to resolve the following error message during payroll processing: "Company not setup for Tax {Tax_Agency_Name}".

What does this warning mean?

The system uses reciprocity rules to calculate employee tax location based on the following information:

  • The Residential Address comes from the Employee's Home Address
  • The Work Location comes from their Cost Center Location Address (or Company location if the Cost Center location is left blank)

If these two addresses determine that the employee should be taxed in a tax location that is not currently set up in your company, this error will prompt you to add this tax.

If you do not believe this tax should be added to this employee, check their home and location cost center addresses. If those are correct, please send the details to so we can help you research this message.

How to fix this warning

  1. Go to Admin > Payroll Setup > Company Taxes (clicking on the error message hyperlink is a shortcut to this same area).
  2. Click the Add Tax Code button on the top right and choose the correct tax agency
  3. Review the tax code defaults and enter any data you may have regarding the tax agency
    1. If you make any overrides from the defaults (i.e. entering in an Account ID or % rate update), please also forward that documentation to
    2. Remember that you are responsible for registering with any tax agency added to your company, and forwarding all registration information with
  4. After adding new tax codes, you must recalculate your pay statements to clear the payroll errors.