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A
AJNiceView
January 17, 2024
Question

Do I change work location for an out of state remote worker?

  • January 17, 2024
  • 1 reply
  • 0 views

So the company is based in a state with state withholding.  The employee is fully remote, working from their home (permanently), in a different state.  I see the option in QB Online Payroll to change the default work location from our office to a location I can add.  In this instance, would I enter their home address?  (QB payroll has not been terribly helpful-  foreign rep opened a "case" but that can take 4 to 6 weeks for a response).  It's affecting their W2 as the home office state is showing in Box 15/16  (we did exempt them so no state tax was withheld for our home office state location)-   yes, we know they can file a nonresident return and not have to owe tax, but that is a pain for employee.  I played around with adding an out of state location and can see that it would then correctly assign them and eliminate that state tax box (their home residence state has no state income tax).

 

So (1) has anybody done this for remote workers in another state?  (2) will their w2 still show correct employer name & address?  (I guess I'm asking, if work location is changed, where does W2 say the W2 came FROM?)

1 reply

M
MadelynC
January 17, 2024

I’m glad to share information on how you can handle your employee's work location in QuickBooks, @AJNiceView.


When setting up employees in QuickBooks Online Payroll, your company's legal business address is the default work location.


Since your employee works in a different state and is fully remote, I recommend reaching out to the IRS to see what applies to you. They can provide enough information and determine which state and local taxes you're responsible for.


Bear in mind that if an employee works in another state, you may be required to complete the new state or local tax setup.

 

Regardless of the work location suggested by the IRS, tax forms will show accurate details as long as your worker's information is entered appropriately into the program.

 

You can contact our payroll support team for assistance in changing your employee's work location. They can help you thoroughly while ensuring the W-2 form shows accurate information.


These resources offer ways on how to set up payroll for remote workers and efficiently manage locations in QuickBooks Online Payroll:

 


In case you have other questions or concerns about operating your employees and payroll, you can add comments anytime. I’ll be here to assist you, @AJNiceView.

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