Correct State Taxes that were were withheld

Welcome to the QuickBooks Community, jmack5.

I've got steps to ensure you can smoothly manage your employee and her taxes correctly in QuickBooks Desktop.

To begin, you need to find out which state taxes apply and get the information. You'll then have to contact the state withholding and unemployment insurance agencies, and any applicable local tax agencies where your employees live and work. They’ll assist you in registering for the account numbers you need to pay the taxes and file the forms.  

Once done, you need to make changes to an existing employee who moved to a new or another state.

Here's how:

1. Choose Employees and select Employee Center.  
2. Locate the existing employee who moved to a new state and double-click your employee from the list.
3. Choose the Payroll Info tab and select Taxes. 
4. Choose the state tab. 
5. From the State Worked dropdown, select the state where you’re required to pay State Unemployment Insurance. Since your employee works remotely, the state worked may be different than where your employee physically works.
6. In the State Subject to Withholding, select the state you’re required to collect and pay State Income (or Withholding) tax for your employee. If you’re required to pay or file State Withholding tax in more than one state, you may want to use QuickBooks Online Payroll. 
7. You may see a prompt to set up the new taxes. Follow the instructions below in Set up your new state taxes. 
8. You may also see a prompt asking if your employee is subject to a list of additional taxes. 

After that, you can now create new state taxes and sign new state authorization documents as needed. You can refer to this article for instructions on how to perform the process: Set up employees and payroll taxes in a new state.

In addition, you can deduct the 58.64 owed by the employee from the next paycheck. Then, I recommend creating a negative payroll adjustment for the previous state and a positive adjustment for the new state. You can then file a corrected W2 and W3 in QuickBooks.

In case you need steps on how to quickly view payroll totals including employee taxes and contributions, you can read this article: Create a payroll summary report in QuickBooks.

I've got your back if you have more questions about managing your payroll and taxes in QBDT. Just add your reply in the comment section so I can assist you further, jmack5. Have a good one.