Why did my QB add a Colorado tax payment when my business is in Texas?

Let me provide some possible reasons why Quickbooks added a tax payment from a different location, drinkhotruby.

Setting up tax payments requires careful attention to detail. First and foremost, please ensure that your tax agency information is accurate.

Additionally, when choosing a tax rate, verifying your employee's details and confirming that the Tax withholding address is located in Texas is essential. QuickBooks can accurately calculate and apply tax payments based on the provided location by following these steps.

To double-check your employee's information, refer to the steps below:

1. Go to Payroll and choose Employees.
2. Select the employee you want to check. Select the pencil icon in the Personal info section, then review the employee address.
3. Click Save.
4. In the Employment details section, review the Work location and click Save.
5. From the Tax withholding section, check the address under the Local Taxes.
6. Once done, click Save.

This may also result from setting up your company and tax settings in QBO, so you must ensure that the work address is in Texas.

Moreover, I'll add this helpful article if you want to file your sales tax return and record your tax payment in QuickBooks Online: File your sales tax return and record sales tax payments in QuickBooks Online.

Drop a comment below if you have further concerns about taxes in QuickBooks Online. I'll be here to lend a helping hand. Have a good one!