I think Sage does withhold based on the job location.  I believe this is correct.  You should ask a tax professional to be sure, but we always work in two states and our withholding is based on in which state we worked.

Hi Char, I agree with Rhonda V, the withholding is based on the job location.  If you want the employees' withholding to always default to the state in which they live, you have to do it in the Employee Setup.  PR > Employee Setup > Enter the employee ID > Entry Info > Taxes.  Find the Tax ID for the work state (i.e. RISWH).  Under Adj Method choose Replace.  Under Recip Tax ID enter the employees' home state (i.e. MASWH).  Keep in mind some states have reciprocal agreements and to the best of my knowledge, the withholding tax should be withheld from the state in which the employee works.

As Rhond V stated below, "you should ask a tax professional to be sure."