I am an Illinois employer who will be hiring Indiana employees to work on Indiana job. I use quickbooks enterprise. On the state payroll setup new employee tab do I choose Indiana for the state where the employees lives and works? I have other Indiana employees that are set up as living in Indiana but working in Illinois.
Hello Becmech,
I'm here to help you in setting up an employee's payroll.
When establishing an employee who lives and works in Indiana, you'll have to select Indiana as the state where they live and works. This ensures that the appropriate state taxes and other relevant payroll information are applied correctly.
For employees who live in Indiana but work in Illinois, you'll have to select Indiana as the state where the employee lives and Illinois as the state where the employee works. However, I recommend visiting Indiana state to know if they have a reciprocal agreement with Illinois on how to handle the employee's withholding taxes. This helps you ensure that you are in compliance with the Indiana and Illinois states.
Furthermore, you can check these articles as your guide in setting up employee's direct deposit:
I'm always around whenever you have payroll concerns.
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