Skip to main content
S
synergyproductsf
February 5, 2023
Question

Business is HQ in Indiana with no operations in OH. We have 1 EE who lives in OH and works in IN. We shouldn't pay OH SUI. How do I bypass that in QBs payroll tax setup?

  • February 5, 2023
  • 2 replies
  • 0 views
Quickbooks is requiring it but we are not required to remit OH SUI taxes. Does someone know how to bypass this requirement when setting up payroll through Quickbooks?

    2 replies

    MariaSoledadG
    MariaSoledadG
    February 5, 2023

    Let me guide you on how you can set up your employee's payroll tax correctly, synergyproductsf.

     

    Your employee's work location helps us determine the correct state and local payroll taxes to collect. Since their new work location is in another state, you can make changes to the setup. To do so, I've provided the steps below:

     

    1. Go to Payroll, then Employees.
    2. If your employee is new, select Add an employee.  Otherwise, select your employee from the list.
    3. From Employment details, select Start or Edit. Select or add the work location where you’re required to pay State Unemployment Insurance.  If you have remote employees, the work location may be different than where your employee physically works. Then select Save.
    4. From Tax withholding, select Edit. Go to the State withholding section. If you see two states:
      • If you don’t need to collect state withholding in one state: in the Filing Status ▼ dropdown, select Do not withhold (exempt).
      • If there’s a reciprocity agreement between the two states, select if your employee gave you a Certificate of Nonresidence form. The form determines which State Withholding is collected.
    5. If you see a Local Taxes or Other taxes section, select the applicable taxes and enter the rates.
    6. If you or your employee are exempt from any taxes (not common), from Tax Exemptions, select the applicable tax(es).
    7. When finished, select Save.

     

    After updating the setup, proceed to Steps 3 and 4 in this article to complete the process: Set Up Employees And Payroll Taxes In New State.

     

    QuickBooks also provides different kinds of payroll reports wherein you can view useful information for your business and employees. Go through this article for your reference: Run Payroll Reports In QuickBooks Online.

     

    Please let me know if you have any other questions about the payroll setup. I'll be here to help.

    S
    synergyproductsfAuthor
    February 5, 2023

    No matter what I do, it still requires that I input an Ohio state unemployment insurance accoutn number and Ohio unemployment insurance rate 0.08% - 10.2%. Is there a way to remove this? From the tax experts I have talked to I am required as an employer to withold Ohio Income Taxes and not Indiana (due to reciprocity agreement) and I am not required to contribute Ohio Unemployment insurance. Can you please help me?

    N
    NHNancy
    December 21, 2023

    I'm having the same issue with QB payroll setup in NH. All employees work in NH but 1 employee lives just over the border in Maine but still comes to work in NH. QB is telling me I need to sign up and get a tax  ID in Maine. Never had this issue with Desktop Pro.

    AldritchM
    AldritchM
    December 21, 2023

    Hi there, @NHNancy.

     

    You'll need to permanently set the employee's withholding tax. In that way, the system won't ask again here's how:

     

    1. Go to Payroll, then Employees.
    2. If your employee is new, select Add an employee.  If an existing employee moved to a new state, select your employee from the list. 
    3. From Employment details, select Start or Edit. Select or add the work location where you’re required to pay State Unemployment Insurance.  If you have remote employees, the work location may be different than where your employee physically works. Then select Save.
    4. From Tax withholding, select Edit. Go to the State withholding section. If you see two states:
      • If you don’t need to collect state withholding in one state: in the Filing Status ▼ dropdown, select Do not withhold (exempt). 
      • If there’s a reciprocity agreement between the two states, select if your employee gave you a Certificate of Nonresidence form. The form determines which State Withholding is collected. 
    5. If you see a Local Taxes or Other taxes section, select the applicable taxes and enter the rates. 
    6. If you or your employee are exempt from any taxes (not common), from Tax Exemptions, select the applicable tax(es). 
    7. When finished, select Save.

     

    I'd like to share this article for full guidance: Set up employees and payroll taxes in a new state.

     

    When you have employees that live in one state and work in another, they may be subject to income tax in both states. There are states that have reciprocity agreements that would require an employer to only pay income tax to one of the two states. 

     

    To help determine what income taxes you may be subject to, I recommend consulting a Maine state agency. Since dealing with multistate employment situations is complex.

     

    If there’s anything else you need help with concerning payroll, please feel free to reply. I'm always around to help!

    Terms & ConditionsAccessibility statement