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Federal & State Taxes

TCW Training

Created on October 2, 2025

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Transcript

The Basics of

When workers are paid taxable wages, federal and state taxes are generally withheld from checks. Learn more about taxes below!

Federal & State Taxes

Federal Taxes

What is it and how do workers claim their taxes?

Dual State & Reciprocity Agreements

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State Taxes

What is it and how do workers claim their taxes?

Tax Tips & Questions

Federal Taxes

When first onboarded via StaffingNation, the federal taxes will automatically transfer to TempWorks for calculating. GLAMs and GSAs will double check the transfer was accurate. Review the screenshots to the right to see how each field in StaffingNation translates to TempWorks.

Multiple Jobs or Spouse Works

Withhold Rate

Withholding Allowances

Other Income 4(a)

If re-engaged,

workers have the option to update

Deductions 4(b)

Additional Withholdings

their federal taxes and if so, manual updates are made in TempWorks by the GLAM or GSA.

Only 0 or 99 if Exempt

US -Federal tax setup

1. Exempt = 99

If a worker claims exempt, it means they will not have any taxes withheld. In these cases, TempWorks will reflect 99 in the exemptions field for either Federal or State.

While TCWGlobal may not advise a worker what to input on their W-4, we may provide general assistance with how to fill out the form by reviewing the instructions in each section with them. If a worker is still unsure, they are encouraged to speak with a tax profressional for further guidance.

2. Workers with Tax Questions

It's important that taxes are set-up properly so referring to all appropriate SOPs are crucial. When in doubt, connect with another teammate or member of leadership.

3. Be Diligent with Taxes

Reciprocity Agreement

A reciprocity agreement is an agreement between two states that allow their residents to only pay tax on where they live—instead of where they work. Not all states have an agreement! GLAMs and GSAs should refer to the following SOPs to ensure proper set-up:

Dual State

If a worker lives in a state, but works in another, we refer to these workers as "Dual State Workers." Generally, workers will pay taxes in their work state, and may also be subject to certain taxes in their home state, as well. TempWorks will calculate taxes based on work site, and home address for any local taxes owed. Certain states allow workers to be taxed only in their state of residency with the presence of a reciprocity agreement.

US - State taxes dual state

US - State tax Reciprocity Agreement

Next

State Taxes

Taxes can vary by state.

US - State Tax forms

Always double check the

SOP to determine what state has taxes or not. If they do, GLAMs/GSAs will manually deploy the state tax form to the worker via HRCenter. If they do not, typically, a State W-4 does not need to be completed.

Based on worker's home state

Number of dependents or 99 if exempt

Marital status

Used in unique cases of dual state

the default Value

Some states are unique....

New Mexico, North Dakota, Colorado and Utah are the only states that allow the use of a Federal W-4 for setting up state taxes.

Until the worker completes their state tax form, they are set-up at the default value (Typically, 0 exemptions and single status). Refer to the US - State Tax Forms SOP for default values.