Our company is in Illinois, we have an employee who lives in South Carolina, but "sits" in Illinois. Does he pay State Income tax? Which State?

Hi there, @jd13612.

I've got some insights about setting up an employee that works in a different state in QuickBooks Online.

In your case, it’s best to contact the state withholding and insurance agencies and any applicable local tax agencies where your employees live and work. They are the only ones who can tell you which taxes apply to your situation.

They can also assist you in obtaining the account numbers required to pay taxes and file forms.

If your employee works at home, check your local city and state agencies to see what applies to you.

Furthermore, if your employee's new work location state, you can set up employees and their payroll taxes in a new state.

Feel free to ask again if you have more questions about employees and taxes. I'll surely be there to help you out.