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C
customturf
April 7, 2023
Question

Can two state withholding tax be shut off? I only have a business location in one state and it wants me to enter another state wh account info.

  • April 7, 2023
  • 1 reply
  • 0 views
There is only one work location listed in my QuickBooks online settings. All my employees past and present are tied to that single location in one state. It doesn't list any states that I can delete.

1 reply

Nicole_N
Nicole_N
April 8, 2023

Hi there. Let me share a few things about the state withholding tax in QuickBooks Online (QBO).

 

If you have employees' state addresses located in another state, this will enable multi-sate payroll. I suggest reviewing your employees' work location. If you see a different state, that is the reason why you have to enter another state's WH account info.

 

Here's how to check their information:
 

  1. Go to the Payroll menu and Select Employees.
  2. Choose the appropriate employee.
  3. Click the Edit icon on the Employment details section.
  4. You'll see the Work location from there.

 

I'm adding this article to learn more about payroll taxes in QBO: Set up employees and payroll taxes in a new state.


The Community is here to help if you have other questions about work locations. Just leave a comment below. Take care.

K
karen-reske-goal
August 7, 2023

I have the same situation - Quickbooks wants me to enter in California information and we work only in Michigan. I have 11 employees with all of their addresses in Michigan in Quickbooks, so I am unsure of how to get past this. 

A
Archie_B
August 7, 2023

Hi, karen.

 

I understand you want to simplify and get rid of those unnecessary state taxes and ensure your payroll setup accurately reflects your situation in QuickBooks Online Payroll. 

 

The state payroll taxes that you and your employees must pay are determined by where your employees live and work. These taxes, which vary by location, may include State Withholding, State Unemployment Insurance, local taxes, State Disability Insurance, or Paid Family Leave.

 

Thus, to remove the California state taxes, you'll need to double-check and update each employee's Employment details for their work location and home address, as well as their Tax withholding information for the state tax setup.

 

Here's how:

 

  1. Go to Payroll, then Employees.
  2. Choose your employee from the list.
  3. From Employment details, hit 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 click Save.
  4. From Tax withholding, hit Edit. Go to the State withholding section. If you see two states:

    • In the Filing Status ▼ dropdown, select Do not withhold (exempt) if you don’t need to collect state withholding in one state.
    • 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, Tick the applicable taxes and enter the rates.
  6. If you or your employee are exempt from any taxes (not common), from Tax Exemptions, click on the applicable tax(es).
  7. Once done, select Save.

 

You can also check out this link for more information about the setup: Set up employees and payroll taxes in a new state.

 

I've saved this article for future reference: Year-end checklist for QuickBooks Online Payroll. This will show you how to complete this year's payroll and prepare for the next.

 

If there is anything else I can assist you with, or if you have any further questions about payroll, please let me know. I'll be glad to help you further. Have a wonderful day!

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