One of my employees moved from CO to IL on November 1st. I have changed her address in QB. The withholdings liabilites shows only CO for November, when it should be IL. How do I change this in QB? She continues to work remotely for us.
Option 2: If you already issued the paycheck to your employees, you'll need to make manual adjustments to correct their state taxes. The easiest way to find the discrepancy is to run a Payroll Checkup, just make sure to create a backup copy of your company file to avoid any accidental data loss. We can also pull up a Payroll Detail Review report to get the amount that needs to be adjusted. Here's how to do that:
Go to the Reports tab then select Employees & Payroll.
Select Payroll Detail Review.
Click Customize Report.
Go to the Filters tab.
On the Filters tab locate and click Payroll Item.
In the Payroll Item drop-down select All State.
Update the report date then click Refresh.
Then you can now enter a wage base and tax adjustments to correct your employee's quarterly or YTD total. You may contact our Phone Care Support if you need assistance when doing the adjustments. Here's how you can contact us:
Thanks for joining the Community. I'm here to get you pointed in the right direction for adjusting withholding in the wrong state for an employee.
The process for adjusting an employee's withholding with a wrong state is different in QuickBooks Online than Desktop. In this instance, you would need to contact the QuickBooks Online Phone Support Team, who have specialized tools for payroll adjustments. Here's how you can reach them: