Will I be charged for the additional state the entire year if I had an employee in a different state but now they no longer work for me?

Thanks for reaching out to us here, @michael-haynes-l.

I'll share the steps on how you can set up your employee, so you won't be charged. You can change the employee's filing status to "Do not withhold (exempt)".

Here's how to do it:

1. Go to Payroll, and then tap Employees.
2. Select and edit the name of the employee.
3. In the What are [employee's name] withholding's? section, tap the Pencil icon.
4. Scroll towards the Federal withholding section, then choose Do not withhold (exempt).
5.  Click Save.

Here's how it looks like:

Learn more about the process, check out this guide: Exempt your employee from Federal or State Withholding.

With the above recommendation, you won't be charged by the state for the inactive employee's.

I'm also adding this link in case you need help with other payroll-related tasks. It has our general payroll topics with articles: View all help for QuickBooks Online Payroll.

Please let me know if you have follow-up questions or concerns with payroll taxes. I'll be around for you. Take care and have a good one.