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?
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.
To change the employee's state:
To create an unscheduled payroll:
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.