QuickBooks Online Elite - Payroll Correction challenges

Update: I spent two hours on the phone with Support on December 15th, with no further resolution. I was told by the agent handling my call that the Payroll Corrections team would not accept my case, but with no clear explanation why or how to resolve from my end. The agent told me she would email me a follow-up, after she researched how I might address the issue myself. But that has not happened.

How do I escalate this further? I don't believe I'm getting the services I have paid for, with the QuickBooks Online Payroll Elite subscription.

I can see how taxing it is to deal with incorrect state withholdings, @MK_APWC. It’s important to us that your employee's pay is accurate and that your business stays on track, so I’m stepping in to make sure this gets the specialized attention it needs.

I’ve shared your case with our Next Level Help team so they can find a path forward for you. They will review your Community posts and previous support history to make sure they have the full picture before they reach out. You can expect to hear from one of our experts within 1-2 business days with the next steps to resolve this.

Hi @cody_a  - thanks for replying.

On December 17th, in my fifth call with QB Support, it finally became clear that my case does not qualify for a correction for the following reason, hence its rejection:

QuickBooks does not adjust state withholding personal income tax through payroll corrections because state withholding is considered a personal income tax. Payroll corrections typically adjust employer-reported wages and taxes, but personal income tax withholdings must be handled according to state tax agency rules.

This is covered in QuickBooks guidance stating they do not support e-filing for states with withholding-based filing requirements, and users must follow state-specific filing rules.

For detailed policy info, refer to the QuickBooks Online help articles on payroll state tax withholding and 1099 filing limitations related to withholding taxes.

For QuickBooks Support: the first three agents I spoke with, were not aware of the above. As such, they guided me to fill out correction forms and let me to believe the correction I was requesting would be possible. This resulted in confusion and time misspent.

For the Community: if a state income tax is unintentionally withheld for an employee, QuickBooks won't be able to correct this for you. In my specific instance, I believe my EE went into Workforce and changed the state tax exemption I had selected in their initial setup, which then led to the "personal income tax" being withheld. Ultimately, I must now register my business in another state and pay the tax withheld.

@cody_a - I need help. On December 22nd I received and two emails (back-to-back) which contradict what I was told on December 17th. The emails were:

1) Intuit Payroll has RECEIVED your CORRECTION request - PTO480668

2) Intuit Payroll has COMPLETED your CORRECTION request - PTO480668

I can't figure out what was done, and now in my Payroll Overview, my TO DO LIST includes new items which don't make sense to me:

File CA DE 9C (3rd quarter of 2025)

File CA DE 9 (3rd quarter of 2025)

For lack of a better word, I'm really feeling jerked around here. What is going on? Who do I call now? This is beyond frustrating and now going to take even more time to resolve.

Filed Complaint case# 15149949478 with Priority Circle on 12/26/2025. One week later, still no response from Intuit Support nor Community Forum agent @cody_a.