Getting charged for 2 states

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If your employee works in a state outside your primary work location, your employee is subject to work-based taxes. QuickBooks Online (QBO) will automatically calculate the payroll taxes for each state in which you have a work location and there will be a multistate support fee.

If you don't have any filing requirements for those states, just change the primary work location state of your employees. This will recognize that you're not filing taxes for the other states. Here's how: 

1. Click Payroll on the left menu.
2. Choose Employees tab.
3. Select the appropriate employee.
4. Click the Edit icon on the Profile section.
5. Edit their address.
6. Press Done.

We can also set the tax status of your employees to Do Not Withhold if they don't have income taxes withheld for that state. Here's how:

1. Go to Payroll on the left menu.
2. Choose Employees tab.
3. Select an employee.
4. Tap Edit employee.
5. In the What are employee's withholdings? section, click the Edit icon.
6. In the section for the secondary state, choose Do Not Withhold from the Filing status drop-down menu and zero out the additional amount.
7. Press Done to complete the process.

Once done, deactivate your work location in the other states so you will no longer be charged for the multistate support fee.

1. Click the Gear icon.
2. Choose Payroll Settings.
3. Under Business Information, select Work Locations.
4. Select the work locations you want to deactivate.
5. Check the box for Mark a work location inactive if you no longer have employees at this site. 
6. Press Save.

To learn more about this topic, you can read this guide: About multistate employment payroll situations. If you need further assistance about this one, I'd suggest contacting our Customer Support Team. They'll pull up your account in a secure environment and help you with this one. You may send a message via chat, call us at a time convenient to you, or we’ll get in touch with you instead. To ensure we address your concern, our representatives are available from 6:00 AM to 6:00 PM on weekdays and 6:00 AM - 3:00 PM on Saturdays, PST. See our support hours and types for more details about this one. Here's how:

1. Go to the Help icon on the top right. 
2. Enter your concern in the search field.
3. Choose Talk to a human.
4. Click the OK. To get you to the right human, in a few words, tell me what you need help with option and tap I still need a human. 
5. Press Contact us.
6. Tick Continue. 
7. Choose Message an agent or Get a callback.

I've also included an article that will help you track where your company stands in terms of employee and payroll expenses: Run payroll reports.

I'd like to know how you get on after trying the steps or after contacting our support, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Take care always.