Can I Enroll Employee who lives in Puerto Rico?

Thanks for dropping by here in the Community, @steve350.

Let me make it up to you by sharing details about setting up an employee from Puerto Rico.

It's possible to set up an employee living outside the United States. You can exempt them from certain taxes based on their visa status. They should fill out an I-9 form and give you a copy of the visa and a valid Social Security number. Please note that your employees can't be on payroll if they have an Individual Taxpayer Identification Number (ITIN). An ITIN looks like a Social Security number but starts with a 9. 

On top of that, you can follow the steps below to exempt your employee from the payroll taxes. Here's how:

1. Go to the Payroll menu and then choose Employees.
2. Tick Add an Employee.
3. Uncheck Ask this employee to enter their personal, tax, and banking info with QuickBooks Workforce below the email address field.
4. Fill in the necessary details for each section. 
5. Go to the Tax withholding, and select Edit.
6. Enter the Federal Withholding and State Withholding information. If your employee is exempt from the Filing Status ▼, select Exempt.
7. From Tax Exemptions, choose the taxes your employee is exempt from. 
8. Once done, select Save.

If you require assistance identifying the payroll taxes that your employee is exempt from, you can reach out to them:

• IRS Publication 515
• For state tax exemptions, speak with your state's agencies.
• Make contact with a tax expert.

You can visit this guide for a detailed process: Set up your employee that isn’t a U.S. citizen.

On top of that, you'll want to run, print, and customize payroll reports in QBO:  Run payroll reports in QuickBooks Online Payroll.

Stay in touch if you need help with other payroll-related concerns, such as managing employees and payroll forms. I'm here to help you anytime. Take care and stay safe.