If my employee live in another state but work on minnesota hiw to take the MN taxes off the to do list.

Generally...

State income taxes are paid based on where employees live.

State unemployment taxes are paid based on where employees work.

Each state has different tax laws so be sure to check yours.  

If you are using a payroll service, they usually provide guidance based on how you setup.

Let me show you how to effectively manage your taxes and keep your payroll data organized, andiie46.

In addition to what Teri mentioned, your Minnesota (MN) tax notification will be removed from the TO DO List once you file the forms or pay your taxes. Regarding your MN taxes, we recommend consulting with a tax expert or accountant. They can offer specific guidance based on your corporation's situation and the employee's details.

Furthermore, you can reach out to the state withholding, unemployment insurance, and local tax agencies in the areas where the employees reside and work. They'll advise you on the applicable taxes.

If you still wish to remove the taxes from the notification list, let's configure the worker's tax setup. Here's how:

1. In your company, head to the Payroll menu on the left panel and choose Employees.
2. From the list, click on the employee's name to see more details. 
3. In the Profile tab, go to the Tax withholding section and press the Edit link to open the Edit withholdings screen.
4. In the State withholding section, tap the Filing status drop-down and select Do not withhold (exempt).
5. Head over to the Tax exemptions section and mark the boxes for the specific taxes you'd like to be exempt from.
6. Press the Save button to apply the changes.
   
   

Refer to this article for more insights about this process: Exempt your employee from Federal or State Withholding.

Explore these resources for additional information on setting up state and local taxes:

• Set up employees and payroll taxes in a new state
• Set up local taxes in QuickBooks Online Payroll

Check out these articles for tips on how to complete your payroll forms, handle tax payments, and set up a work location:

• Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll
• Set up QuickBooks Online Payroll to pay and file your payroll taxes and forms
• Manage work locations in QuickBooks Online Payroll

If you need further assistance completing a specific payroll task or have other QuickBooks concerns or questions, click the Reply button and post your comments.  The Community is here to lend a helping hand.