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March 14, 2024
Question

Because our corporate headquarters is in Idaho, QB set up Idaho withholding. Our employees work in Montana. I only need Montana withholding, how do I fix it?

  • March 14, 2024
  • 1 reply
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1 reply

JaeAnnC
March 14, 2024

Thanks for reaching out to us, Dana. I'll be happy to guide you correct the state tax withholding of your employees in QuickBooks Online (QBO).

 

If you haven't yet, set up the correct work location in the employee's profile. Here's how:

 

  1. Go to Payroll and select Employees.
  2. Click the employee's name.
  3. Go to the Employment details section and click Edit.
  4. In the Work Location dropdown, select + Add work location.
  5. Enter the address and click Add location.

 

Once done, set up the correct state tax withholding. To do that:

 

  1. In the employee's profile, go to the Tax Withholding section and click Edit.
  2. In the State withholding dropdown, enter the filing status and the amount to withhold under the correct state tax (MT State Taxes). In the Idaho state taxes, select Do not withhold (exempt).
  3. Click Save.

 

I'll share this article for more information: Set up and manage work locations in QuickBooks Online Payroll.

 

Additionally, I'm sharing this list of payroll reports that will be beneficial whenever you need an overview of employee wages, taxes, and contributions: Run payroll reports

 

Feel free to swing by the Community anytime if you need additional assistance managing your employees' work locations. We're always around to provide support whenever you need it. Keep safe, and have a great rest of the day!