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:

• Update or delete employee info
• Excel-based payroll reports

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.

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 

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.

what is the setup steps for QBO? I am not seeing these options you mentioned above. Thank you!

What is the setup process for QBO. I didn’t see these options you mentioned above. Thank you!

Setting up your employees who work in multiple states varies depending on the state they are in, Zevaristo. I'm here to discuss this topic with you further.

Before setting up your employee who works in multiple states in QuickBooks Online (QBO), you must determine which state exempts your employee from filing state withholding taxes. Once identified, label it as "Do not withhold (exempt)" to ensure no withholding taxes are collected. After that, you can follow the steps below to start establishing it:

1. Log into your QBO account.
2. Go to Payroll, then select Employees.
3. If the employee is new, click the Add an Employee tab. If they are not new, select the employee you wish to configure.
4. Go to the Employee details section, then click Edit.
5. In the Work location dropdown, click the + Add work locations where you're required to pay State Unemployment Insurance. If you have remote employees, remember that the work location may differ from where the employee physically works. Then, click Save.
6. From Tax withholding, select Edit. Go to the State withholding section. If you see two states:
   • If you don't need to collect state withholding in one state, click the Filing Status ▼ dropdown. Then, select Do not withhold (exempt). 
   • If there is a reciprocity agreement between the two states, indicate whether your employee has provided you with a Certificate of Nonresidence form. This form identifies which state withholding taxes will be collected.
7. Once done, click Save.

You can learn more about setting up employees who work across multiple states through this article: Set up employees and payroll taxes in a new state.

Additionally, visit this article to view various payroll reports you can generate based on your needs. It allows us to access information about the business, employees, and payroll taxes: Run payroll reports in QuickBooks Online Payroll.  

To streamline your payroll process, consider Exploring QuickBooks Payroll.

Return to this thread if you have additional QBO employees set up queries. I'm always ready to help your business operate smoothly. Have a great weekend.