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568SKH
June 2, 2020
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adding another location that is out of State- how to manage state income taxes?

  • June 2, 2020
  • 1 reply
  • 0 views

Company that uses quickbooks online is setting up a second office out of State.  How do I add the second State to payroll taxes so that the proper income taxes and state unemployment taxes are paid for the employees working and living there?

Best answer by ShiellaGraceA

Hi @568SKH,

 

QuickBooks uses a work location to calculate multi-state payroll taxes. If you're using the same QuickBooks Online and payroll account for your second office, you can add a new work location for your state taxes.

 

To do so, here are the following steps:

  1. Go to Gear, then Payroll settings.
  2. Choose Work Locations under Business Information.
  3. Select the Add a Work Location link. Then, enter new work location details.
  4. Hit Save.

Once done, enter the new work location to your employee's settings. Here's how:

  1. Go to Workers, then Employees.
  2. Choose the employee's name, then Edit employee. For new employee, tick Add an employee.
  3. Click the Employment tab.
  4. Select the added Work Location from the drop-down.
  5. Hit Done.

However, if you're required a separate account for your state tax form, you'll have to subscribe to a new account. Then, use the second office's address as your primary business address.

 

You can visit our page learn about our different subscriptions at this link here: QuickBooks products. I've also added this awesome article about multi-state employment payroll situations that I'm sure you'll find helpful. In this article, you'll learn about the different multi-state situations with its reciprocity agreements.

 

With these steps, you'll be able to record your payroll taxes correctly. Know that you're always welcome to come by anytime if you have other questions or concerns. Thanks for posting and I wish you have a wonderful day ahead.

 

1 reply

S
ShiellaGraceAAnswer
June 2, 2020

Hi @568SKH,

 

QuickBooks uses a work location to calculate multi-state payroll taxes. If you're using the same QuickBooks Online and payroll account for your second office, you can add a new work location for your state taxes.

 

To do so, here are the following steps:

  1. Go to Gear, then Payroll settings.
  2. Choose Work Locations under Business Information.
  3. Select the Add a Work Location link. Then, enter new work location details.
  4. Hit Save.

Once done, enter the new work location to your employee's settings. Here's how:

  1. Go to Workers, then Employees.
  2. Choose the employee's name, then Edit employee. For new employee, tick Add an employee.
  3. Click the Employment tab.
  4. Select the added Work Location from the drop-down.
  5. Hit Done.

However, if you're required a separate account for your state tax form, you'll have to subscribe to a new account. Then, use the second office's address as your primary business address.

 

You can visit our page learn about our different subscriptions at this link here: QuickBooks products. I've also added this awesome article about multi-state employment payroll situations that I'm sure you'll find helpful. In this article, you'll learn about the different multi-state situations with its reciprocity agreements.

 

With these steps, you'll be able to record your payroll taxes correctly. Know that you're always welcome to come by anytime if you have other questions or concerns. Thanks for posting and I wish you have a wonderful day ahead.

 

A
aro1
September 24, 2020

Hello There,

 

please see attached as i could not find any link to the answer provided on this mail trail.

my company is operating in two state and will like to add the second state so as to be able to file tax should the need arises.

thanks

 

KlentB
KlentB
September 24, 2020

 

Hi aro1,

 

Thanks for adding a screenshot of your Payroll Settings.

 

The steps given by my colleague, ShiellaGraceA is for QuickBooks Online Payroll Enhanced only. For QuickBooks QuickBooks Online Full Service, Core, Premium, and Elite, you'll have get in touch with our Customer Care Team if you need to add a new work location in a new state. This way, we can pull up your account in a secure session and then set up the new work location for you. Here's how:

 

  1. Go to Help (?).
  2. Select Contact Us.
  3. Enter "Adding a new work location in a new state" in the text box, then click Let's talk.
  4. Choose Start a chat or Get a callback from our next available expert.

I also encourage checking our support hours first to ensure that we address your concerns on time.

 

In case you'll need to add a new work location in the same state, you can create it through the Payroll menu. Let me guide you how:

 

  1. Select Payroll from the sidebar menu. go to the Employees tab.
  2. Choose the appropriate employee, click the Edit button next to Employment.
  3. Select the Work location drop-down menu and choose New Work Location.
  4. Enter the work location address.
  5. Click OK and then Done.

Additionally, here's an article that you can read to help determine if there's a reciprocity agreement between your employee's work state and residence state: Multistate withholding matrix.

 

The Community always has your back, so please let me know if you have any other concerns or questions. Assistance is just a post away.

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