Need to add SECOND state to Tax Expense Accounts for Payroll

I've got your back on adding another state withholding for your payroll, @LASchwartz415.

You'll want to make sure that you add and assign a new work location for your employees. This way, the second state will show in the Tax Expense Accounts section and manage your payroll taxes correctly from there. Here's how to create a new work location:

1. Click the Gear icon, then select Payroll Settings.
2. In the Setup Overview page, click Work Locations.
3. Select Add a Work Location.
4. Enter the work location address.
5. Hit Save.

I'm adding this article for more guidance: Set up and assign a new work location.

Once done, you can go to the Payroll Accounting Preferences and toggle the I use different accounts for different groups of taxes to show the second state and set the appropriate tax payable accounts. I'm adding a screenshot below for your visual reference.

You might also want to check out this article to know more about the multiple work locations in different states: About multistate employment payroll situations.

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. 

Hi,

We don't have a second worked-in state, we have employees that live in another state.  How do you get that state's tax to show on the liabilities to be paid on payroll?

Hello, @lleadbeater.

State and local withholding taxes are based on your employee's residence location as well as his/her work location. These taxes are calculated and reported differently. It depends on the laws of the particular states where your employee lives and works. Some states have reciprocity agreements. Check this article to find out whether there is a reciprocity agreement: About multistate employment. 

Additionally, you can run payroll reports to track where your company stands in terms of employee and payroll expenses.

Should you have any additional questions or concerns, feel free to post them here and I'll take care of them.