I currently live in Colorado and for a while I had an employee based in MA. I setup payroll to deduct MA taxes. The employee is no longer with the company, and I keep getting notifications from QuickBooks that I need to file MA reports.
How can I delete that withholding account?
Go to Solution.
Hello there, michaelpbesaw.
It's my pleasure to guide you on how to handle Employee Multi-state Withholding in QuickBooks Online (QBO).
Since your employee is no longer with the company and was being setup for a secondary state, you'll need to do the following steps below:
Let me show you how to inactivate a work location in a secondary state. Before that, you have to make sure that no active employees are currently assigned to the work location.
Here's how to inactivate a work location:
Once done, you can now update an employee's tax status and opt out of a secondary state:
After performing the steps above, our system will provide the tax liabilities for MA state and you will no longer receive reminders for tax payments and form filings to that state.
Here's a great resource that you can check on for more detailed steps: About multistate employment payroll situations.
That's it. Should you have other questions about payroll in QuickBooks, don't hesitate to let me know and I'd be glad to help you out.