PAYROLL QUESTION: Why on God's green Earth do payroll taxes continue to reintroduce out-of-state taxes when I tell it over and over I am not filing taxes in that state?

Hey there, jlp8w.

Payroll taxes will continue to reintroduce if the work location is still active, and the filing status of the employee isn't set to Do not withhold (exempt) from their profile. 

I'll guide through the entire process, starting with making the work location inactive. Here's how:

1. Click the Gear icon in the upper-right corner and select Payroll Settings.
2. Under Business Information, hit Work Locations.
3. Choose the location you want to inactivate.
4. Put a checkmark on the Inactive box, then tick Save.

Check out these screenshots:

Once done, please update the employee's tax status through these steps:

1. On the left navigation go to Workers and select Employees. 
2. Choose the employee name. 
3. Click Edit employee. 
4. In the section What are employee's withholdings?, select Edit. 
5. In the section for the secondary state, choose Do Not Withhold from the Filing status drop-down, and zero out Additional amount. 
6. Select Done.
7. Repeat steps 1-6 for any other employees who reside in the secondary state.

For additional information, check out the About multistate employment payroll situations article. It contains important notes and instructions how to opt out.

If you have any concerns about QuickBooks, leave a comment below. I'm always here to assist. Have a good one.

Thank you very much for your information. Unfortunately, mine information is correct - I only have one in-state work location - the main office address - and it won't let me delete it to have no location at all.  Also, my 1 out-of-state employee has always had his home state filing status (KY) as "Do Not Withhold (exempt) with 0 and 0.00 additional amount - just like in your illustration.  I have never cut KY taxes on this employee, never asked it to withhold any out of state on him or any employee; and yet Quickbooks consistantly reactivates my KY tax forms every few months and indicates I'm behind on filing.  I have to go back in and yet again tell Quickbooks that I am not withholding KY taxes and then it will behave for a few months and not try to take out KY taxes.  I cannot find out what or why it continues to flip the switch back over again and again. 

Any other ideas or suggestions?  Thanks again for your help!

Thanks for getting back, jlp8w.

I suggest archiving those forms to remove them from your payroll tasks. Here's how:

1. Select Dashboard from the left navigation menu.
2. Locate the form, then click File now.
3. Select the liability period.
4. Click Archive.
   

After that, let's change the work address aside from making it inactive. Then, enter the primary location on file. Doing this should stop the system from asking you to file KY forms. Please see the attached screenshot below for your guidance.

However, I recommend contacting our QuickBooks Online Payroll Team if you're getting the same results. By doing so, they can review the employee's profile and check what's causing the form to show up again. This requires pulling up your account which I'm unable to perform in this forum for security reasons.

Here's how to get in touch with them:

1. Select Help (?) at the top right.
2. Select Contact Us to connect with a live support agent.

Let me know if you have follow-up questions and I'd be happy to help you out.