My shop is in Wisconsin, I hired someone from Illinois. I also have full service payroll. Will taxes be paid correctly?

It depends on a couple of things you may have to investigate 

Do the two states have any reciprocal agreements for transfers of tax collected (meaning Wisconsin will transmit to Illinois the  appropriate withholdings)

If not, have you or will you register with the state of Wisconsin so that Wisconsin taxes can be properly withheld and remitted

Finally, does QB Full Service Payroll have an arrangement with Illinois for state tax remittance? It is not universal, some states are omitted

You kind of just reworded my question and bounced it back.

Good day, @tavis.

Let me share some information with you about multistate employment in QuickBooks Online Payroll.

The information shared by the Community backer john-pero has a good point. Some states have reciprocity agreements that would require an employer to only pay income tax to one of the two states.

The system calculates depends on the details you’ve entered. If the employee presents a certificate, you’ll need to enter the appropriate filing status and allowances on their Tax Information page. This way, QuickBooks will report tax correctly.

On the other hand, if your employee does not give you a certificate of non-residence, the reciprocity agreement does not apply. That means your payroll taxes are calculated as though there were no reciprocity agreements between your work state and your employee's residence state.

Here’s an article that will give you more knowledge about multistate employment payroll situations. From there, you’d able to able to know the multistate rules and its agreements.

You can also contact our Payroll Support team regarding this matter. They can further assist you in reviewing your setup to ensure taxes are paid properly. Here are the steps below:

1. Select the (?) Help menu located at the top right.
2. Click Contact Us.
3. Enter your concern on the box.
4. Hit Let’s talk.
5. Choose to Get a call or select Start a chat to connect with them.
   

If there’s anything else you need help with concerning payroll, please feel free to reach back out. Have a great day!