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Employee Withholdings in Another State

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?

Solved
Best answer 04-15-2019

Accepted Solutions
QuickBooks Team

Re: Employee Withholdings in Another State

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:

  • Inactivate all work locations in that state.
  • Set the tax status for all employees to "No Not Withhold" for that state.
  • Confirm that you wish to disable Multistate Plus support for that state.

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:

  1. Go to the Gear icon.
  2. Click Payroll Settings.
  3. Under Company and Account, click Work Locations.
  4. Select a Work Locations.
  5. Mark the Inactive checkbox.
  6. Click Save.

payroll.PNG

Once done, you can now update an employee's tax status and opt out of a secondary state:

  1. Click Employees.
  2. Click on the employee's name.
  3. Click Edit in the Taxes & Exemptions section.
  4. In the section for the secondary state, select Do Not Withhold from the Filing Status drop-down.
  5. Zero out any additional amount for the secondary state.
  6. Mark the checkbox to opt out of payments and forms for the secondary state.
  7. Click OK.
  8. Repeat steps 1-7 for any other employees who reside in the 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.

1 Comment
QuickBooks Team

Re: Employee Withholdings in Another State

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:

  • Inactivate all work locations in that state.
  • Set the tax status for all employees to "No Not Withhold" for that state.
  • Confirm that you wish to disable Multistate Plus support for that state.

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:

  1. Go to the Gear icon.
  2. Click Payroll Settings.
  3. Under Company and Account, click Work Locations.
  4. Select a Work Locations.
  5. Mark the Inactive checkbox.
  6. Click Save.

payroll.PNG

Once done, you can now update an employee's tax status and opt out of a secondary state:

  1. Click Employees.
  2. Click on the employee's name.
  3. Click Edit in the Taxes & Exemptions section.
  4. In the section for the secondary state, select Do Not Withhold from the Filing Status drop-down.
  5. Zero out any additional amount for the secondary state.
  6. Mark the checkbox to opt out of payments and forms for the secondary state.
  7. Click OK.
  8. Repeat steps 1-7 for any other employees who reside in the 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.

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