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CA PIT wages on out of state employee

My business resides in Nevada and so do our employees. We are going to do construction work in California and I am required to withhold PIT wages on hours worked while they are in California. My issue is, they may have 20 hours worked in Nevada and 20 hours worked in California. How can I set up a payroll item to only tax PIT wages on hours worked while in California?



1 Comment

Re: CA PIT wages on out of state employee

I'm glad to have you here in the Community, jennilee.


Let me help you create paychecks for your employees that are working in California and Nevada.


While QuickBooks Desktop doesn't have a multi-state feature, I have a workaround for you. You can manually change the state subject to withholding of your employee depending on where they are currently working. Then, create an unscheduled payroll.


Here's how:


To change the employee's state:

  1. Select Employees at the top, then choose Employee Center.
  2. Double-click the employee's name, then select the Payroll Info tab.
  3. Click the Taxes box.
  4. Update the State Subject to Withholding (refer to the first screenshot).
  5. Click OK twice.



To create an unscheduled payroll:

  1. Click Employees at the top, then choose Pay Employees.
  2. Select Unscheduled Payroll from the list (refer to the second screenshot)..
  3. Select the employee you want to create a paycheck, then select the Open Paycheck Detail button.
  4. Enter the needed details.
  5. Select Save and Close or Save and Next to continue creating additional paychecks.



Once done, manually change the state again before creating a paycheck for the next state your employees are working to. 


To learn more about multi-state withholding check out this article: Multi-State withholding responsibilities.


That information should get you on the right track. Please reach out to me if there is anything else I can help you with. I'll always be here to assist you. Have a good day.