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gblock1
January 12, 2020
Question

How do I set up withholding from two states on one pay check.

  • January 12, 2020
  • 3 replies
  • 0 views
I can not determine how to do that.

3 replies

M
MirriamM
January 12, 2020

I'm here to lend a hand, @gblock1.

 

When you have employees that live in one state and work in another, they may be subject to income tax in both states. There are states that have reciprocity agreements that would require an employer to only pay income tax to one of the two states. 

 

To help determine what income taxes you may be subject to, I recommend consulting your state agency. Since dealing with multistate employment situation is complex.

 

To learn more about your withholding responsibilities, visit this article: Multi-State withholding responsibilities.

 

If there’s anything else you need help with concerning payroll, please feel free to reach back out. Have a great day!

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Lisa galvin
October 19, 2020

This did not actually answer the question.  Can I withhold from two states on one paycheck?  I am sure this happens all the time with employees.  How is it done?  Can it be done with QB desktop?

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jamespaul
October 19, 2020

Hello, Lisa Galvin.

 

I have information regarding the multi-state support in QuickBooks Desktop. 

 

As mentioned before, QuickBooks Desktop doesn't support multi-state withholding, so we're unable to withhold two states on one paycheck. 

 

More details can be found here: 

If your employee simply transferred from one state to another, you can track the details in QuickBooks Desktop. You'll to set up a new payroll item for the tax withholding. You can check this article for the full guide: Set up payroll items for new state taxes.

 

When you're ready to pay your employees, you'll want to run payroll as you normally would. 

 

If you need to manage your employees, check their payroll data and year-to-date taxes, you can check our articles here. Browse for an article or look for a specific topic at the bottom of the page. 

 

Post your replies or comments if you have other concerns with your QuickBooks Desktop company file or your payroll service. Here to offer help again. 

BigRedConsulting
BigRedConsulting
January 13, 2020

RE: I can not determine how to do that. 

 

It cannot be done in QuickBooks.

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gblock1Author
January 13, 2020

I am trying to set up employee direct deposit and get error 20102

JasroV
JasroV
January 13, 2020

Hi there, @gblock1.

 

The error code 20102 usually comes up when signing up for Direct Deposit (DD) but already has an existing one that's still active. To investigate the root cause of this issue, it would be necessary to look at your account details.

 

I'd recommend contacting our payroll support team. They have the tools to check your account securely and your previous DD service.

 

Here's how to contact them in your QuickBooks Desktop (QBDT):

  1. Go to the Help menu.
  2. Select QuickBooks Desktop Help.
  3. Click Contact Us.
  4. Enter a brief discussion of your concern and click Continue.
  5. Choose your preferred way to get in touch with them.

I've also added this article for additional details on setting up a direct deposit: Set up direct deposit.

 

You can always get back to us if you need more help in setting up a direct deposit. I'm always here to help.

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Lesli A
August 7, 2023

So, I have always, since 1996, when I first started using QB, had to set up two employee records, one for each state, and then process a paycheck for each state. Today, I just had a software patch update and after I installed the patch, it won't allow me to have two separate employee files for one employee!! It always gave me a warning that there was already another employee with same social security number and was I sure I wanted to save, which I just click on YES and all was well. NOW it won't even allow me to do that. In the freaking middle of the year! I have no way to keep wages from each state separate from each other so the proper tax goes to each state, our employees work in both KS and MO almost every single week! From what I can tell, I'm supposed to run one payroll, then change the state worked to the other state and run a second payroll???  The W4 information is different for each state, so am I just supposed to pull their W4 each time I do payroll, to see what the other state exemptions are??  And then they tell me I'm supposed to run a payroll report at the end of the year and modify the W2 so that I can add the second state to the W2. So I'm paying for a payroll service that I'm basically doing all the work myself...  I can see all kinds of nasty IRS mistakes happening by hand-entering data myself!!!       I am so stinking mad right now!!!

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    HammiBookkeeper
    August 8, 2023

    Try Gusto payroll. The quick journal entry into QB is a breeze and Gusto will handle everything for you. Customer service is very helpful with setup. 

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    Lesli A
    August 8, 2023

    Unfortunately Gusto is a stand-alone payroll, and I have to have it tied into all the other work we do--construction projects. I also don't have time to do payroll in one program and transfer over to the other. Xero doesn't have the advanced features I have to use. I use the Enterprise version of QB in order to have more power behind the software. I got off the phone with QB payroll support and the lady did a Glance session and could totally see what the problem is and is going to pass it on to tech support. She did try to tell me the change was made "for compliance reasons". I just talked to my accountant and he said he had no idea what compliance there was that required you to put all wages on one W2 instead of two, like we've always had to do. This is a complete nightmare and the only workaround I can figure is to alter the social security number temporarily in one record and change it to the correct number at the end of the year when I do my W2's. Which of course, would then require me to alter the SSN in the other record temporarily while I do the second set of W2. But there is no IRS regulation that requires all wages to be on one W2. This is infuriating....

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