An employee moved their contract work location from PA to WY. Will QuickBooks update state tax filings automatically, or are further steps needed for compliance?

Thank you for your inquiry regarding the state tax filings in QuickBooks Online (QBO) Payroll, Balaji-K-S. You will need to update the employee's work location to ensure state tax filings are processed based on the new work location. I got more details about this.

Once you update the employee's work location, the program will automatically adjust the required state tax withholdings and filings. However, I recommend reaching out to the state withholding, unemployment insurance, and local tax agencies in the areas where your employees live and work beforehand. This step will ensure you have the most accurate information regarding applicable taxes.

They can also provide information on which taxes are relevant to your situation and assist you in registering for the necessary account numbers for tax payments and submissions.

When you're ready, here's how you can update your employee's work location:

1. Go to Payroll, then select Employees.
2. From Employment details, click Start or Edit.
3. From the work location dropdown, select an existing address or Add work location.
4. If you selected add work location, enter the physical address where your employee works and select the correct address from the list. Don't use a P.O. Box. The physical address helps determine the appropriate taxes.
5. When finished, hit Save.

You can navigate this resource to learn more about managing work locations in the program or set up new applicable taxes: Set up and manage work locations in QBOPayroll.

The location where your employees live and work affects the state payroll taxes that you and your employees need to pay. To help you handle these changes, reference this article for help: Set up employees and payroll taxes in a new state in QBO Payroll.

Finally, the program offers a variety of payroll reports that you can access, helping you to monitor your employees and account info. Please check out this article to see the complete list: Run payroll reports.

This information should help you navigate this update on your QBO Payroll account. I'd appreciate any updates you can add in the comments. I'm always around and ready to lend a hand. Goodbye!