Setup worker who is Employee under State test and Independent Contractor under Federal test

Hello @DarrenS1,

As much as I'd loved to help you set up your employee or contractor's profile, we have separate support who can better explain your concern for accurate payroll tax reporting.

That being said, I'd recommend contacting our Payroll Care Team so someone can help you set up these profiles. With their tools like their tools, he/she will be able to pull up and look into your account, securely.

To do so:

1. Go to Help.
2. Select QuickBooks Desktop Help.
3. Tap Contact Us.
4. Hit Search for something else.
5. Enter Set up employee or contractor for California Assembly Bill 5 in the Tell us more about your question: field.
6. Click Start a Message.

Please let me know in the comment section down below if you have any other concerns. I'll be sure to get back to you and help you with your QuickBooks needs.

If they're an employee at the state level, then they're an employee overall.  Same if reversed.