The workflow
Location and tax resolution come first — converting addresses into location codes and querying the STE for the applicable Unique Tax IDs. That groundwork, and the model behind it, is covered in How the STE Works. This page picks up from there, at the configure-then-calculate phase.1
Configure the calculation
Set up everything the engine needs for the paycheck:
- Wages by wage type, tied to location codes
- Tax jurisdictions (the tax IDs to compute, plus per-tax options such as exemptions, residency, and year-to-date amounts)
- Benefit contributions and imputed income that affect withholding
- Engine options and the payroll run parameters (pay date, pay periods per year, pay period number)
2
Calculate and read results
Run the calculation. Retrieve the amount withheld for each tax, along with the gross, subject, and taxable wage amounts, and use those values in your system to determine the employee’s net pay.
Two ways to configure
Hosted API
Configuration and calculation happen in a single request: you build a JSON payload describing the full scenario and POST it to the engine, then read the response.
On-premise SDK
You can build up the configuration with the SDK’s setter methods, or send the same JSON request body used by the hosted API directly to your local installation.
Related
Sending JSON to the on-premise SDK
Send hosted API request bodies straight to a local installation.
Reading a calculation result
What comes back per tax, and how to consume it.

