cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Get unlimited expert tax help and powerful accounting in one place. Check out QuickBooks Online + Live Expert Tax.
dbsw2002
Level 2

Does an out of state employee pay income taxes, UI and Disability state taxes to the state they live in or to the state where their employer/company resides?

 
Solved
Best answer July 15, 2022

Best Answers
Kurt_M
QuickBooks Team

Does an out of state employee pay income taxes, UI and Disability state taxes to the state they live in or to the state where their employer/company resides?

Hi there, @dbsw2002. I'll be happy to take care of your concern and share some details so you can get through this and finish setting up your employees' taxes in QuickBooks Online (QBO).

 

Please know that where your employee lives and works will determine the state payroll taxes you, and your employees are subjected to. However, it'll also depend on the reciprocity agreement of the states where your employee lives and works. For more information about this, you can visit this article: Multi-state payroll situations.

 

You can also reach out to your tax advisor regarding this matter. This way, they'll be able to provide further guidance on how to deal with these types of situations.

 

Additionally, I've got you this article in case you'd like to learn more about payroll tax compliance in QBO: Payroll Tax Compliance Links.

 

You may also visit this article to know about get updates about tax compliance: Tax and compliance news and updates in QBO.

 

@dbsw2002, know that you can always get back to me anytime if you need help performing specific tasks in QuickBooks. You can notify me by clicking the REPLY button below. I'll be more than happy you help you out again. Take care, and happy weekend!

View solution in original post

3 Comments 3
Kurt_M
QuickBooks Team

Does an out of state employee pay income taxes, UI and Disability state taxes to the state they live in or to the state where their employer/company resides?

Hi there, @dbsw2002. I'll be happy to take care of your concern and share some details so you can get through this and finish setting up your employees' taxes in QuickBooks Online (QBO).

 

Please know that where your employee lives and works will determine the state payroll taxes you, and your employees are subjected to. However, it'll also depend on the reciprocity agreement of the states where your employee lives and works. For more information about this, you can visit this article: Multi-state payroll situations.

 

You can also reach out to your tax advisor regarding this matter. This way, they'll be able to provide further guidance on how to deal with these types of situations.

 

Additionally, I've got you this article in case you'd like to learn more about payroll tax compliance in QBO: Payroll Tax Compliance Links.

 

You may also visit this article to know about get updates about tax compliance: Tax and compliance news and updates in QBO.

 

@dbsw2002, know that you can always get back to me anytime if you need help performing specific tasks in QuickBooks. You can notify me by clicking the REPLY button below. I'll be more than happy you help you out again. Take care, and happy weekend!

territodd
Level 1

Does an out of state employee pay income taxes, UI and Disability state taxes to the state they live in or to the state where their employer/company resides?

I have contacted the state of MO and was told my employee only has to pay in TN. I keep getting that I need to set up MO and quickbooks will not allow me to do much on my taxes without getting this fixed. Please help. 

Carneil_C
QuickBooks Team

Does an out of state employee pay income taxes, UI and Disability state taxes to the state they live in or to the state where their employer/company resides?

It's nice to have you join this thread, @territodd.

 

I'm here to lend a hand in managing your employees and taxes in QuickBooks Online Payroll.

 

You might consider checking your employee's address to determine which state your employee has to pay. This way, we'll verify if your employee belongs to the state of Missouri (MO) or Tennessee (TN).

 

Once you determine the state or local taxes to pay and file, we can make the necessary changes. Here's how:

 

  1. Go to the Payroll menu and select Employees.
  2. If your employee is new, select Add an employee. Otherwise, select your employee from the list.
  3. From Employment details, select Start or Edit. Select or add the work location where you're required to pay State Unemployment Insurance. If you have remote employees, the work location may be different than where your employee physically works. Then select Save.
  4. From Tax withholding, select Edit. Go to the State withholding section.
  5. When you see a Local Taxes or Other taxes section, choose the applicable taxes and enter the rates.
  6. If you or your employee are exempt from any taxes (not common) from Tax Exemptions, select the applicable tax(es).
  7. When done, click Save.

 

However, if verified that it is for state of MO, I recommend contacting our QuickBooks Online Payroll Support. This way, they can pull up your account in a safe environment and help you with the best process to handle these taxes.

 

Furthermore, I'll be adding these articles to help you handle your employee's taxes in QBO Payroll:

 

 

I'll be around if you need further assistance with your payroll taxes. I'm very eager to help. Take care always!

Log in today
Get expert help and peer support to tackle all your QuickBooks questions effortlessly.

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up