We have a business in NJ we had a new employee start who lives in PA and accidently set him up to have NJWT held instead of PAWT is there a way to correct this?

Let's update the employee's address and enter the correct state, INR3.

You can go to the Employee Center menu and update the address from there. This will help QuickBooks determine the correct state and local payroll taxes to collect. 
 

Let me show you the steps.

1. Select Employees, then Employee Center.
2. Double-click the employee name you want to edit.
3. Choose Payroll Info, then click State.
4. Choose NJ from the State Worked drop-down.
5. Select PA from the State Subject to Withholding drop-down.
   
6. Complete other fields, then click OK.

When an employee lives in a different state, you may need to set up and pay taxes in that state. I'm adding this article to help you set up additional tax information for the company: Find out which state taxes apply and get the info.

If you have other employee information that needs to correct, check out this article: Learn how to change your employees' info in QuickBooks payroll products. Use the table to learn what’s in each tab and click the links for more detailed instructions.

If you think payroll liabilities were also updated after entering the correct state, use a liability adjustment to correct employees’ year-to-date (YTD) or quarter-to-date (QTD) payroll info.

This should help correct the employee's address. Let me know if you have additional questions in mind by commenting below. I'll always be here for you. Hope you enjoy the rest of the day.

We have already paid him and now need to correct the NJWT that was taken out in error and input them in PAWT how can this be corrected?

Hey there, @INR3. 

Thanks for checking back with us. 

You can create a liability adjustment to move the funds into the correct liability account. Here's how: 

1. Go to Employees, then Payroll Taxes and Liabilities.
2. Choose Adjust Payroll Liabilities.
3. In the Date and Effective Date fields, select the last paycheck date of the affected month or quarter.
4. In the Adjustment is for: section, click on Employee Adjustment to correct your employee’s YTD info. Then select the employee's name. Do this even if the item being adjusted is a company-paid item.
5. Under the Item Name column, tap on the payroll item you want to adjust.
6. Enter the Amount of the adjustment.
   • If the item is under-withheld, enter a positive amount to increase.
   • If the item is over-withheld, enter a negative amount to decrease.
7. Enter the amount under the Income Subject to Tax column if you need to make a wage base adjustment.
8. Under Memo, enter a note about the adjustment for reference.
9. Click on Accounts Affected, then OK.
   • Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
   • Hit Affect liability and expense accounts if you want the transaction to reflect in the liability and expense accounts.
10. Tap on OK to close the Affect Accounts window.
11. Click on Next Adjustment if you have additional employees to enter an adjustment for. Otherwise, select OK to save the changes.

That should do it. If you feel you need more assistance when entering an adjustment, I recommend consulting with your accounting professional. Your accountant can review your data and make adjustments for you. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center. 

For additional details about this process, check out Adjust payroll liabilities. 

Please let me know if you have any questions or concerns. Take care!