When you update taxes within Payroll, all taxes are updated, including state taxes. Some state taxes may have rates that are individual to your company, such as Unemployment Insurance, which in many states is based on your layoff history. In those cases, you will need to enter your rate manually. Depending on your security access and permissions, you may or may not see the following menu items. From within Payroll, go to Setup > Taxes > Tax Rates and click "List" to see the available taxes. Federal taxes are listed first, followed by state taxes in alphabetical order by state. You should also check Setup > Taxes > Tax Groups and check the radio button for "State" to to review your state taxes that will be applied to any employee working in that particular state.

During Payroll time entry and processing, all hours and earnings are assigned to a state based on a hierarchy of retrieval. Any employee with time allocated to a Job will have the state retrieved from the Job setup record, under the "Scope, PR and EQ" tab. A default state can also be assigned at the employee setup screen, "Entry Info" tab. On the Employee setup screen, click the "Taxes" button to see if an employee has had their tax calculation modified, perhaps to "No Tax" or "Exempt".

I would recommend exploring the "Help" files within Payroll, contacting your Certified Consultant, or Sage support if you have specific questions after becoming familiar with the proper setup and operation of the Payroll module.

Let me know if I can provide further details.

Art Minds, Consultant