Re: I run payroll for my company and we have a non-resident employee working for us who lives in AL, works in TN. QBO wants to withhold AL income tax. How do I avoid this?
One thing to try - temporarily change the employees address to the company address and then in payroll tax setup for the employee see if you can choose TN as a choice for withholding. Online payroll might not offer choice of state as does desktop payroll so you then leave their address as your address until year end creation of W2.