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September 23, 2021
Question

Can you please help to brief the steps for running payroll to an employee based in Texas location for MN registered company?

  • September 23, 2021
  • 1 reply
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We have a new employee starting in Texas and our company is registered in MN. I did received TWC Unemployement ID. Not sure how to differentiate it on quickbooks payroll?

1 reply

Angelyn_T
September 23, 2021

Hi there, @TekHops. I'm here to share with you some information about handling employees who work and live in different states.

 

QuickBooks Online Payroll calculated work-based payroll taxes for each state in which you have a work location. If your employee works in a state outside your primary work location state, your employee is subject to work-based taxes such as State Unemployment Insurance. 

 

However, working and living remotely in a different state may impact your state withholding or unemployment taxes. For the time being, you can consult with an accountant or tax professional for further assistance. They can help you in setting up your new employee correctly so QuickBooks will calculate and deduct the taxes accordingly.

 

Some states have reciprocity agreements. You can check out this link to learn more about the agreement between your employee's work location and residence states: Manage employees living or working in different states.

 

Once your employee is set in QuickBooks, you're now ready to run and process his or her payroll. You can use this link as your reference: Help on common payroll topics.

 

If you have any other questions about multi-state employment, please notify me by adding a comment below. I'm more than happy to help. Wishing you a good one!