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Cynthia68
Level 1

setting up employee who works in multiple states

How do I set up an employee who works and is paid in two different states?

3 Comments 3
ReymondO
Moderator

setting up employee who works in multiple states

Currently, setting up employees in multiple states is unavailable in QuickBooks Desktop, @Cynthia68.

 

While assigning numerous states to an employee's profile isn't unsupported, you'll need to handle this manually. This means you have to switch states each time you process payroll for an employee's hours worked in different locations.

 

Here's a step-by-step process to help you manage this:

 

1. Navigate to the Employees menu and select Employee Center.

2. Double-click on the employee's name.

3. Go to the Payroll Info tab and click on Taxes.

4. Select the State tab and choose the state for which you are processing payroll.

5. Update both the State Worked and State Subject to Withholding fields.

6. Click OK when finished.

 

When processing payroll, the system will use the assigned state to calculate taxes accurately, ensuring taxes are reported correctly without mixing them up.

 

For further assistance with editing employee profiles or generating Excel-based payroll reports, you can refer to these links:

 

 

If you have any more questions or need further assistance about setting up employees with multi-states, feel free to ask. We're here to help.

Cynthia68
Level 1

setting up employee who works in multiple states

So at the end of the year when W-2's are done, how does it look on the W2 form?  Will there be (1) W-2 with federal WH and both states WH listed at the bottom?  

 

Thanks for helping me understand how this process works.

 

Cynthia 

 

RheaMaeH
QuickBooks Team

setting up employee who works in multiple states

Thank you for coming back to this thread, Cynthia.

 

Yes, the W-2 form will display information for all states where an employee worked, as it is a federal tax document.

 

In QuickBooks Desktop (QBDT), you manually set up employee information. However, the W-2 form is automatically generated based on the paychecks created throughout the year. When it's time to produce W-2 forms at year-end, QBDT creates a single W-2 form for each employee. This form automatically includes data for all states where the employee worked.

 

For future reference, here's an article that will guide you in preparing your tax forms and wrapping up last year's payroll in QuickBooks Desktop Payroll: Year-end checklist for QuickBooks Desktop Payroll.

 

Feel free to reach out if you have any other questions or concerns regarding your W2 forms. I'm always here to assist you. Have a great day.

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