Payroll in Alaska - why did quickbooks deduct PA income tax from my employee?

Thanks for checking in with us, Fishbone.

When setting up payroll, you’ll have to enter the necessary details including the work location and employees’ addresses. QuickBooks generates the forms and taxes to set up based on the employees’ residence and work locations.

If your employee lives in PA, then you'll see the PA income tax from their paycheck. If the business and employees are in different states, some agencies have reciprocity agreement and may require employers to file and pay taxes for each one.

However, this should be charged by the employee, I'd suggest double-checking their profile and disable this deduction. On the other hand, you can these taxes through the state agency's website.

To know more about the process, you can take a look at the following resources below. These will provide you with more details about how reciprocity state works in QuickBooks as well as lists of residents under reciprocal agreements:

Set up employees and payroll taxes in a new state.

Which states have reciprocal agreements?

Let me know if there's anything else you need with QuickBooks. I'll be around to provide additional assistance. Have a wonderful day, Fishbone.