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Payslip defaulting CA state for employees

Hi everyone,
Issue: Payslips are defaulting the state as California (CA) for all employees, regardless of their actual work or residence location.


Oracle Recommendation: We need 2 different elements for CA and non-CA employees to be processed.

Has anyone else experienced this issue? If so, is there a known solution, fix, or workaround available?
Any insights would be greatly appreciated.
Thanks,
Gowthami

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