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Level 2

Setting up payroll tax liabilities

Hi, I'm the sole employee of my corporation in New York and on the payroll of my business using Quickbooks payroll. I'll soon be working in Los Angeles for 3 months and need to figure out how to set up payroll and taxes via Quickbooks for that one job in CA. I am already in the process of qualifying my corporation to do business in CA. Any help would be greatly appreciated. Thank you.

Virginie

Solved
Best answer 03-19-2019

Best Answers
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QuickBooks Team

Setting up payroll tax liabilities

Congratulations on your upcoming business in California, @Flyingpancakes,

 

You can set up your work locations to pay the correct taxes. Let me guide you how.

  1. Click on the Gear icon.
  2. Select Payroll Settings.
  3. Under Business Information, click on Work Location.
  4. Click on Add a Work Location.
  5. Click on Save.

That should do it! This will include the calculation of your  California State taxes when running payroll.

 

Keep me posted if you have other questions about setting up your payroll state taxes. I'll be glad to help.

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7 Comments
Highlighted
QuickBooks Team

Setting up payroll tax liabilities

Congratulations on your upcoming business in California, @Flyingpancakes,

 

You can set up your work locations to pay the correct taxes. Let me guide you how.

  1. Click on the Gear icon.
  2. Select Payroll Settings.
  3. Under Business Information, click on Work Location.
  4. Click on Add a Work Location.
  5. Click on Save.

That should do it! This will include the calculation of your  California State taxes when running payroll.

 

Keep me posted if you have other questions about setting up your payroll state taxes. I'll be glad to help.

View solution in original post

Highlighted
Level 2

Setting up payroll tax liabilities

Thank you so much. This is so helpful. I will be in touch again if I have another question.

Best, Virginie

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Level 10

Setting up payroll tax liabilities

@Flyingpancakes 

QBSE is not for a corporation

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Level 1

Setting up payroll tax liabilities

I am not doing business in Ohio just having an employee that lives in Ohio and will be working for us in PA

Highlighted
QuickBooks Team

Setting up payroll tax liabilities

Thanks for joining us here, TonyL2.

 

If you're using QuickBooks Online Payroll, follow the steps that were shared above on how to change or verify if the work location is set up to PA. 

 

Although, some payroll taxes, including state and local withholding taxes, are calculated according to the employee's residence location as well as your employee's work location.

 

They might also be calculated and reported differently, depending on the payroll regulations of the particular states where your employee lives and works.

 

I'd also recommend checking out these articles for more details:

 

Please add a reply on this thread if you have follow-up questions.

Highlighted
Level 1

Setting up payroll tax liabilities

I have set up our first employee but the tax liabilities withheld are not posting to my general ledger accounts.  The withholdings are properly listed on the payroll check stub but are not posting to the GL.

Highlighted
QuickBooks Team

Setting up payroll tax liabilities

Thanks for joining us here, djpayne4.

 

I'll help you check your accounting preferences and make sure that the withholding amounts are mapped to the correct General Ledger accounts. Here's how:

 

  1. Go to the Gear icon and select Payroll Settings.
  2. Click Accounting under the Preferences section.
  3. Scroll-down to the Tax Expense Accounts or Tax Liability Accounts and select the account for each taxes. 
  4. Click OK

Once done, go back to your General Ledger and check if you can already see the withholding. 

 

Also, make sure to run reports after processing payroll. This will give you a quick review of the transactions that you just made. Here's a guide for more details: Run payroll reports.

 

Please don't hesitate to add another reply if you have other questions. Thanks!

 

 

 

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