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October 10, 2023
Question

I do not need to set up another state but i keep getting notices to

  • October 10, 2023
  • 1 reply
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employee works in my state but moved to another state .  It is only 15 minutes away so I dont need to pay taxes in that state as employee still works in my state

1 reply

October 10, 2023

Hello there, Melissa. I'm here to provide details about handling payroll tax notices in QuickBooks Online (QBO).

 

If you received the notice from your state, you can send your payroll tax notice to us to avoid additional tax penalties, interest, or notices. Here is a detailed article that outlines the steps to do it flawlessly: Send in your payroll tax notice.

 

On the other hand, if you have updated your employee's address, you'll typically see program notices to complete the setup. It’s also best to contact the state withholding and unemployment insurance agencies, and any applicable local tax agencies where your employees live and work. The agencies can tell you which taxes apply to your situation.

 

Furthermore, you can update your employee details after verifying what actions to take from your state. Here's how:

 

  1. Go to the Payroll menu, then EmployeesPick your employee from the list if an existing employee moved to a new state.
  2. Click Start or Edit from Employment details. Select or add the work location where you must pay State Unemployment Insurance. Then tap Save.
  3. From Tax withholding, select Edit. Go to the State withholding section. If you see two states:
    • If you don’t need to collect state withholding in one state, select Do not withhold (exempt) in the Filing Status dropdown. 
    • 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. 
  4. Choose the applicable taxes and enter the rates if you see a Local Taxes or Other taxes section. 
  5. Once finished, tap Save.

 

Refer to this article for additional details: Set up employees and payroll taxes in a new state.

 

Additionally, you can check out this article that will give you a closer look at your employees' total wages, deductions, and tax information for a certain period: Run payroll reports.

 

If you have any other questions about managing your payroll state taxes, let me know by adding a comment below.  I’m always here to lend a helping hand. Have a great day!