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October 1, 2020
Question

We recently hired an employee for our logging company who lives in Virginia and our work location is in NC. What do I need to do to get VA taxes taken out?

  • October 1, 2020
  • 1 reply
  • 4 views
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1 reply

MaryLandT
Level 10
October 1, 2020

Hello there, lchno1,

 

In QuickBooks Online, the state and local withholding taxes of an employee who lives outside their work location are based on both their residence location and work location. These taxes are calculated and reported differently, depending on the laws of the particular states where your employee lives and works.

 

You'll want to review the localization of work provisions when you have employees who live in VA but works in LA. This will help you determine which state's payroll taxes the employee services are subject to.

 

You can refer to this page, About multistate employment payroll situations, then scroll down to Multistate rules to learn if whether there's a reciprocity agreement between LA and VA.

 

Meanwhile, you can add the newly hired employee in QuickBooks by following the steps below:

 

  1. Log in to your QuickBooks Online Payroll account.
  2. Go to the Payroll from the left menu, then select Employees.
  3. Select Add an employee.
  4. Enter the employee's info, and select Done.

I've added this page to help you gather employee information: Add or edit an employee in Online Payroll.

 

Let me know if there's anything else you need concerning payroll, and I'm always around to help.