I too, am grappling with this issue. I live on the border of WA and OR, with WA having no income tax, and Oregon having income tax and requiring withholding for employees that earn more than a couple thousand dollars throughout a year in Oregon. We have many jobs (construction) in Oregon, and will continue to do so. I even called ADP, and their basic service also does not offer multi-state payroll. To get that level of service with ADP you must have at least 25 employees. We have just 2 employees. All is not lost, however: After an Intuit "Payroll expert" flatly told me that NO QB Payroll service accommodates multi-state payroll, I closed that chat and proceeded to set it up as follows: The work-around solution is to simply set up 2 employees of the same name. You will have to differentiate them as follows (add a code enclosed with [for example in my case {OR}] in the last name. Put the full real name in the Legal Name field. Simply enter the hours for each state in the applicable employee. The employee will receive 2 paychecks per pay period that they work in two (or more) states. At the end of the year they receive a W-2 for each state they worked in. Dang, I should bill Intuit a fat consulting fee for this advice on how to use their product to accomplish something that "people have been asking for for 20 years." :-)