Hi there, @nadneiny-gmail-c.
I appreciate you for sharing your sentiments about your customer support experience.
I know it would be more convenient to exempt from Alabama state taxes after setting up the Do not withhold for the employee.
Payroll taxes continue to calculate for the state if the location is active and the filing status of the employee isn't set to Do not withhold (exempt) from their profile.
To resolve this issue, we can make the work location inactive. Here's how:
- Go to the Gear icon in the upper-right corner, then select Payroll Settings.
- Under Business Information, hit Work Locations.
- Choose the location (AL) to inactivate, then put a checkmark on the Inactive box and tick Save.
Once done, update the employee's tax status. Here are the steps:
- Go to Workers on the left menu, then select Employees.
- Choose the employee name, then click Edit employee.
- In the section What are employee's withholdings?, select Edit.
- In the section for the secondary state, choose Do Not Withhold from the Filing status drop-down, and zero out Additional amount.
- Select Done.
You can also check out this article for additional information about opting out of the multistate employment payroll situations.
For the $12 charges, I'd recommend you contact our Customer Care team again so they can review your billing details and process a refund after its evaluation.
Leave a comment below if you have additional concerns. I'm always here to assist. Have a good one.
