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Employee withholdings to wrong state

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.

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Employee withholdings to wrong state

Thanks for getting in touch with us for support, @Anonymous,


I can help you correct your employee's state tax calculations in QuickBooks Desktop.


There are a few steps we need to do to fix your employee's state taxes. First, let's verify if your employee's profile has the correct state information. Let me guide you through the steps:

  1. Go to the Employees tab then select Employee Center.
  2. From there, double-click the employee's name.
  3. Select Payroll Info.
  4. Click the Taxes button the go to the State tab.
  5. Make sure the following items are correct: State Worked / State Subject to Withholding, SUI is marked, Extra WithholdingFiling status and Number of allowances
  6. Go to the Other tab.
  7. Delete the Colorado taxes or surcharges on that field then click Yes on the warning.
  8. Click OK.

Then, let's verify your SUI rate for the state of Illinois is correct in your Payroll Item List. Follow the steps below:

  1. Go to the List menu then select Payroll Item List.
  2. Locate and double-click the Illinois SUI.
  3. Click Next to view the rate.
  4. Click Next multiple times then Finish.

You can check out this article to know more about changing the SUI rate in QuickBooks Desktop: Change the SUI rate for Quickbooks Payroll Basic, Standard and Enhanced


Once everything is all set up, you can now fix your employee's paycheck. Here are several ways to correct your employees paycheck depending on your payroll situation.


Option 1: If the paycheck is not yet issued to your employees, you can delete and recreate the check it. Here's how:

  1. On the Employee Center, go to the Employee list.
  2. Click the employee name, then look for the Transactions tab below the Employee Information.
  3. Double-click the paycheck you want to delete.
  4. On the top tool bar, click Edit.
  5. Choose Delete Paycheck.
  6. Click OK.
  7. After deleting the paycheck, create a new paycheck.

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:

  1. Go to the Reports tab then select Employees & Payroll.
  2. Select Payroll Detail Review.
  3. Click Customize Report.
  4. Go to the Filters tab.
  5. On the Filters tab locate and click Payroll Item.
  6. In the Payroll Item drop-down select All State.
  7. Click OK.
  8. 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: 

  1. Go to this link:
  2. Click the Payroll button.
  3. Click on View Contact Info.

You may find this article helpful: Fix Incorrect State Unemployment (SUI) or Withholding (SIT)


That should get you all set, @Anonymous. Please let me know if you need anything else with correcting your payroll. I'll be glad to help you anytime. Have a good one!

Level 1

Employee withholdings to wrong state

How do you do this in Quickbooks Online?  These options are not available.

QuickBooks Team

Employee withholdings to wrong state

Hi @hbint,


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:


  • Visit the following website: QuickBooks Support.
  • Choose options for the two prompts.
  • Click Get Phone Number.


I'm sure that a member of this team would be happy to assist you in updating the payroll liabilities to the correct state. 


Please feel free to let me know how it goes by posting a comment below. Hope you have a good week ahead. 

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