📝 Overview
If your business operates on the go without a fixed physical location, you are still required to have a default work location on file for payroll and tax purposes. This article explains how to determine the right address to use.
📍Setting a Default Work Location
Even if your business does not have a storefront or office, you need to designate a default work location. Use the primary address where you or your employees conduct administrative work, store equipment, or begin and end each work day. This is typically one of the following:
Home address: If you or your employees work out of a home office or park vehicles and equipment there at the end of the day.
Office or studio address: If there is a physical location used for scheduling, client communication, or administrative tasks before heading out to work.
🧠 Example: A mobile dog grooming business operates entirely out of a van. The owner parks the van at home and handles all scheduling, client communication, and bookkeeping there. In this case, the home address should be listed as the default work location.
🔑Why This Is Required
Listing a correct default work location ensures:
The right state and local tax jurisdictions are assigned for withholding and reporting.
Your business remains compliant with payroll and labor regulations.
Payroll records and tax filings are accurate for both your business and your employees.
⚠️ Important Note: Using an incorrect or incomplete work location can result in payroll being filed under the wrong tax jurisdiction, which may cause compliance issues down the line.
Confirm the address with the business owner during setup.
❓Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
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What if the business owner works from multiple locations throughout the week?
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Use the address where the majority of administrative work is done, or where the business day most consistently starts and ends. If there is no clear primary location, the home address is typically the best default.
Can the default work location be updated later?
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Yes. Work locations can be updated in your payroll settings. If your business address changes, update the default work location promptly to keep tax jurisdiction assignments accurate.
Does the work location need to match the business mailing address?
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Not necessarily. The default work location should reflect where work is actually performed or where employees begin their day, which may differ from a mailing address or registered business address.
Why can't I just leave the work location blank?
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A work location is required before payroll can be processed. Without one, the system cannot determine which tax jurisdictions apply, which means payroll cannot run. All employees must also be assigned to a work location before their first payroll.