Allow me to share information on removing a state in your Payroll Taxes in QuickBooks Online (QBO).
Yes, you can remove a state in your Payroll Taxes in QBO. However, you must ensure that this location is not designated as your primary location and that there are no employees assigned to this location or payrolls running for this location.
Here's how:
Go to the Gearicon, then choose Payroll Settings.
Locate Work Locations, then click the pencil icon to make some changes.
Select the exact state, then hit Edit.
Click on the Delete work location, then hit Save.
Moreover, I’ll be leaving you with the following articles that entail exempting your employees from Federal or State Withholding taxes and setting up your employee's payroll taxes in a new state:
My son was an employee of my company about 12 years ago. He has lived in Colorado for 20 years, so when I entered his address, QB created a reminder for Colorado taxes. My company has always been in NC. I just need to delete the Colorado reminders. It is not listed in work locations.
Currently, we're unable to remove state tax reminders in QuickBooks Online (QBO). When entering an employee address, the system will recognize and assume that you pay taxes to the state added.
I understand if the tax notifications have raised some concerns for you. While the option to disable them is unavailable, I recommend sending your feedback to our software engineers. This way, they can review your suggestion and may possibly take it into account in our next product upgrades. To do that: