E-filing W-2s in NC when employee has ITIN

Let me share information with you about e-filing W2 in North Carolina, @BandEPA.

There's an updated process for NC that you'll need to go through in order for you to completely e-file W2-s.

To begin, create W2-s to send it to the state:

1. Click on Employees, then hit Payroll Tax Forms & W-2s, and then create State W-2 E-file.
2. Click on Continue twice.
3. Choose your state from the dropdown, then choose Get QuickBooks Data.
4. Hit OK. If you need to, fix any errors or add missing info.
5. Choose the Add-Ins tab to find the QuickBooks Payroll State W-2 dropdown and select Start Interview.
6. Check the box I understand that I must review my data and answer the following questions. Then click on Next.
7. Note the file name and location. Hit Next.
8. Answer the questions in the interview and review any auto-populated info.
9. Choose Next until you reach the End of the Interview.
10. Create W-2 File, then hit OK.
11. Click on Yes to save the Excel workbook for your records.

After that, kindly follow steps 2 to 3 from this article to continue e-filing W2-s: File your state W-2s with Quickbooks Desktop Payroll Enhanced.

Don't hesitate to reach out if you need more assistance regarding payroll forms or QuickBooks.

North Carolina is NOT an option for state selection under your recommended method.  Thus, I cannot proceed to the creation of the file.  Is there a work around to this issue via the "State W-2s - NC State Worksheet (E-file Only)" on the payroll forms menu for submitted a W-2 for an employee with ITIN instead of a SSN?

I know a way how you can e-file your state W-2s, @BandEPA.

Before we start, make sure to download the latest tax table in QuickBooks. Refer to this article for the detailed steps.

• Get the latest payroll tax table update.

After running the payroll update, restart your computer, and then try checking if you're now able to see North Carolina from the drop-down. If it's still unavailable, you can pull up the Tax Form Worksheets and then go to your state agency website to e-file. Let me walk you through how.

1. Go to the Employees menu at the top.
2. Select Payroll Tax Forms & W-2s.
3. Choose Tax Form Worksheets in Excel.
4. If prompted by the Excel security warning, saying macros are not enabled in Excel, follow the directions to enable macros for your version of Excel.
5. Pick the type of tax worksheet you want to create and the dates, click Create Report.

Next, go to your state agency website and then follow their instructions to upload your file (e-file your state W-2). 

For more information about state W-2s and Excel reports, check out these articles below.

• File your state W-2s with Quickbooks Desktop Payroll Enhanced

• Excel based payroll reports

I'm also attaching our help content in case you need help managing payroll-related tasks. It has our general payroll topics with articles.

I'll be right here if you have follow-up questions or concerns with state W-2s, so don't hesitate to comment back below. Take care and have a good one.

QuickBooks is correct. Someone with an ITIN and no SSN cannot be employed as they don't have the right to work in the USA. It makes no sense to accept an ITIN on payroll forms, since people who only have ITINs can't be paid as employees and can't earn money in the US:

https://www.irs.gov/businesses/small-businesses-self-employed/hiring-employees

"Do not accept an ITIN in place of an SSN for employee identification or for work. An ITIN is only available to resident and nonresident aliens who are not eligible for U.S. employment and need identification for other tax purposes. You can identify an ITIN because it is a 9-digit number that begins with the number "9" and is formatted like an SSN (NNN-NN-NNN). 

"Note: An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN."

The even have a video:

https://www.irsvideos.gov/Business/Employers/HiringPeopleWhoLive

NC is still NOT an option, with the most current payroll update.  It would be nice with QB would allow us to file either way.  The old way, which is the method you suggested, would work for me as it worked in the past.

The new way to file the NC W-2 is much more streamlined and easy but does not work with this business.

Did you find a solution to this problem. I am having the same issue with a construction client. They have had employees with ITINs for years and it worked fine last year the way that QB created the efile upload file but not that it is done through QB it won't work. 

I can share some information with employees with ITIN instead of SSN, @mgkeller.

For nonresident aliens (NRAs), they must pay federal taxes at the NRA rate. You'll just need to set up the employee for federal income tax withholding at the NRA rate.

First, make sure to update QuickBooks to the latest release and then get the newest payroll tax table in QuickBooks Desktop Payroll to stay compliant with paycheck calculations. Once done, close QuickBooks Desktop and then reopen it.

Then, follow the steps outlined in the following article on how to set up NRA withholding for a new or existing employee: Set up Nonresident Alien (NRA) tax withholding for foreign employee.

You can also refer to the following article for more information about the exemption status of foreign employees with particular visa types.

Let me know if you still have questions about employees with ITIN instead of SSN. I'm always glad to help in any way I can. Have a great rest of the day!