Correcting the employee state in the W2 - Tax implications for the employer

Hello there, NG_ACC.

When updating the employee's address on the W-2, there is a possibility that it could result in retrospective tax liabilities for the employer. It's because it got sent to the wrong state. It's also because every state has its tax rates. 

Since you're using QuickBooks Payroll Automated filing, our Payroll Support will be the one who'll help and give you more info about this. Here's how:

1. In your QBO account, click on the Help icon.
2. Choose Contact Us.
3. Provide a brief description of your issue and follow the on-screen instructions. 

You can also check out these articles for more info when filing your W-2 form and making reports.

• Learn when and how to submit your W-2 forms to Federal and state agencies.
• Run payroll reports in QuickBooks Online Payroll.

If you've got more questions about W2s or any other payroll stuff, juts post again. I'll help.

Hi SarahannC, 

Thanks for your reply. The QBO payroll team says there will be no additional tax liability. However, I am finding it hard to wrap my head around this. As you say 'it could result in retrospective tax liabilities'. How can I be 100% certain before making the change?