Adding State Tax Information

Purpose

This step captures your company's tax accounts for every state where your employees work: state withholding IDs, unemployment insurance (SUI) account and rate, and state-specific programs such as paid family and medical leave. UZIO uses these to withhold, deposit, and file state payroll taxes on every paycheck.

Who can do this: Any user whose role includes the Payroll permission. This is usually the Employer Admin, but other admin roles can be granted the same access.

Prerequisites

• The Company Filing Address step is complete. Your work locations determine which states appear here. You cannot start this step before company information is saved.
• For each state: your state withholding account ID, SUI account number, and your company's SUI rate (from your state rate notice)

How states get added

UZIO creates a state tax record for each state where you have a work location. When you add or remove work locations, the state list updates automatically. If you need a state beyond your work locations (for example, for a remote employee), add it manually with the Add Other States button.

What you enter per state, and what it affects

Maryland: Paid Family and Medical Leave (FAMLI)

Maryland Family and Medical Leave Insurance (FAMLI) contributions start with pay dates on or after January 1, 2027. If you have a Maryland work location, the State Taxation step shows an MD Paid Family and Medical Leave Details section. Complete it before your first 2027 payroll. Nothing changes for 2026 payrolls.

The section asks:

• Is your company and all employees exempt from paying MD FAMLI? If Yes, you only need to choose the Effective Date.
• Select the rate that applies to your company:
• 0.90: 15 or more employees, counting employees in every state, not just Maryland.
• 0.45: fewer than 15 employees, counting all states.
• Do you want to pay a portion of the employee's contributions?
• No: the standard split applies. At 0.90%, you and your employees each pay 0.45%. At 0.45%, employees pay the full amount.
• Yes: enter your Employer Contribution as a percentage of the total. Employee Contribution fills in automatically and can't be edited. At 0.90%, your share must be between 50% and 100%. At 0.45%, it can be anywhere from 0% to 100%.
• Effective Date: the first day of the quarter the setting starts from, for example 01/01/2027. Dates in the past can't be chosen.

How it works:

• Contributions apply to gross wages up to the Social Security wage base. They appear on paychecks as MD Paid Family and Medical Leave (employee) and MD Paid Family and Medical Leave - Employer.
• To exempt one employee, use Tax Exemptions > Other Tax Exemption on their payroll record. This removes both the employee and the employer contribution for that person. See Setting Up Employee Payroll.
• Employee contributions are reported in W-2 Box 14 as MD PFML, starting with tax year 2027.
• After your first save, View History on the section lists each setting by effective date: exempt status, rate and split.

Vermont: Child Care Contribution (CCC) tax

Effective July 1, 2024, most Vermont employers pay the Child Care Contribution (CCC) tax, a state program tax on wages earned in Vermont, separate from PFML. On the State Taxation step, the Vermont state record has a VT Child Care Contribution Details section that asks:

• Is your company and all employees exempt from paying Child Care Contribution tax? (Yes/No)
• Do you want to deduct a portion from your employee's wages? Employers may withhold up to 25% of the tax from employee wages as the employee's portion, or withhold less (or nothing) and cover the remainder.

New York: MCTMT PrompTax enrollment

If you have employees working in New York's Metropolitan Commuter Transportation District (MCTD), which covers New York City and surrounding counties, and your quarterly payroll expense in the district exceeds the state-set threshold, you are subject to the Metropolitan Commuter Transportation Mobility Tax (MCTMT). Check the current threshold with the New York Department of Taxation and Finance. Employers enrolled in New York's PrompTax program must remit MCTMT on the same schedule as their withholding tax.

On the State Taxation step, the New York state record has a NY MCTMT PrompTax Details section that asks:

• Are you enrolled under PrompTax program? (Yes/No). Select Yes if your business is enrolled. This drives whether UZIO calculates and remits MCTMT on your withholding schedule.
• If you answer Yes, you are also asked which quarter your first UZIO payroll falls in. If it is Quarter 1, enter your prior-quarter wages for Zone 1 (Bronx, Kings, New York, Queens, Richmond counties) and Zone 2 (Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Westchester counties) so UZIO can pick up MCTMT correctly mid-year.

Steps

1. In the payroll setup checklist, open the State Taxation step.
2. For each listed state, enter the withholding ID, SUI account number, and SUI rate.
3. Complete any deposit schedule and state-specific program fields UZIO prompts for.
4. Save each state.

[Screenshot: State Taxation step listing states derived from work locations]

Expected outcome

• Each state shows as configured. The step completes when every state from your work locations is done.
• UZIO withholds, deposits, and files state taxes using these accounts and rates.

Keeping it current

• New SUI rate notice (usually each December or January): update the rate here with the effective quarter from the notice. Do not wait for the first payroll of the year.
• New work location or remote employee in a new state: the state appears here automatically (or add it with Add Other States). Complete it before running payroll for those employees. Missing state tax information is a critical blocker on the Payroll Dashboard.

Common problems

PFML or SDI was never withheld for an employee. How do I catch up?

Do not set up a manual catch-up deduction. PFML and SDI amounts are taxes, not deductions, and a deduction will not reach the state filing. Fix the underlying cause first (usually a missing or exempt-flagged program configuration on this step, or a missing work location). Then contact UZIO Support to recalculate and remit the missed periods correctly.

I cleared the Massachusetts PFML exemption but the employer share still is not calculating

Review every MA PFML field on this step after changing the exemption status; the employer share may need its own setting checked. If the employer contribution still does not appear on the next payroll, contact UZIO Support with the effective date the exemption ended.

Still stuck?

For a back-dated PFML or SDI true-up, a state that will not save, or an employer share that will not calculate, please reach out to us at support@uzio.com or call +1-571-601-1752. Include the state, the tax type, the effective date, the affected employees, and a screenshot of the state record. Do not include employee SSNs.

Related articles

• Payroll Setup Overview
• Adding Company Address Information: work locations drive the state list
• Adding Federal Tax Information
• Understanding and Finding SOC Codes: required on some states' unemployment returns
• Understanding the UZIO Tax Payment Process