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I set up a new employee with an Oregon address and Oregon state tax form. Why did QB also take out New Mexico withholding taxes and how can I make it stop?

 
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QuickBooks Team

I set up a new employee with an Oregon address and Oregon state tax form. Why did QB also take out New Mexico withholding taxes and how can I make it stop?

Hi there, @istrator7.

 

QBO takes out the New Mexico tax withholding when you have set up an employee with a New Mexico address.

 

To stop this, we have to archive the New Mexico quarterly tax form to remove the notification. Please follow these steps:

  1. Go to the Taxes menu and select Payroll Tax.
  2. Click Quarterly Forms under the Forms section.
  3. Select the NM tax form by clicking on it.
  4. Click the Archive button to archive the form.

 

You also need to record a 0 payment to remove the payment notification. Here's how:

  1. Click the Pay Taxes button under the Payroll Tax tab.
  2. Look for the tax amount and click the Record Payment link beside it.
  3. Make sure the amount is 0, then click Record payment.
  4. Click Skip for Now.

 

Lastly, let's make the NM work location inactive so the notification will no longer show up on the next quarter. Here's how:

 

  1. Go to the Gear icon and click Payroll Settings.
  2. Click Work Locations under Company and Account.
  3. Click the location that belongs to NM.
  4. Check the box for Inactive.
  5. Click Save.

 

Also, here are some helpful articles that you can follow about the details in archiving forms and changing primary state in QuickBooks Online for your future reference: 

 

Please place a comment if you have additional questions. I'm always around to help. Have a good one!

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