QBO payroll says city, state, zip code doesn't match when setting up new employee info. The address is 100% correct. How can this be fixed?

Welcome to the QuickBooks Community, @ABosley.

Let me provide some information that will help you in setting up the employee's address in QuickBooks Online (QBO) Payroll.

When entering an employee's address or work location, there may be rare occasions when our system doesn't accept the submitted combination of city, county, or zip code, and mostly it is not verified by the USPS site.

QuickBooks adheres to the coding system set for US addresses in order to remain compliant with the federal and state governments. In order to successfully match your employee's city, state, and zip code, first, confirm with your employee again to verify the information he/she provided.

I recommend utilizing the USPS Look-up Tool. This website has a searchable database that enables users to find the acceptable zip codes associated with a certain street address, city, or set of cities.

After adding your new employees, you'll want to check out this article for more guidance about processing payroll in QBO: Process or run payroll. This includes a video presentation for a visual reference for the whole process.

Please let me know how it goes after checking the address from the USPS database. I'll be here to help if you have other questions. Stay safe!