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JAG16
Level 1

Why are we still paying taxes for Illinois when our company is in Iowa and we no longer have any Ill employees?

We had an employee who lived in Ill, our company is in Iowa this employee stopped working for us a few years ago yet the state of Ill is still taxing, why?
2 Comments 2
KimAnnVA
Level 5

Why are we still paying taxes for Illinois when our company is in Iowa and we no longer have any Ill employees?

Would need more information, it may be due to how you file your taxes, so if it is a tax payment that you pay quarterly example July to September, if employee last pay date is during this period, you may not see deduction until October when that tax payment is scheduled to be deducted from your bank account. Unemployment taxes the same thing. 

 

QuickBooks sent me an email letting me know that they will be changing how they do taxes, they will deduct all taxes and net payroll at the same time instead of taking it out at different dates which is causing confusion.  Really hope they keep that update for January 2025.  

IrizA
QuickBooks Team

Why are we still paying taxes for Illinois when our company is in Iowa and we no longer have any Ill employees?

I can share some information as to why Illinois taxes are still being deducted even though you have already moved to another place, JAG16.

 

Before we proceed, please know that QuickBooks Online (QBO) generates the forms and taxes based on the employee's residence and work locations. Since you mentioned that your company is no longer in Illinois and you don't have an employee that works in there, it's best to check all of the employee's address to ensure that it is accurate. 

 

Here's how: 

 

  1. Go to the Payroll menu, then choose Employees option.
  2. Select the employee's profile.
  3. From the Personal Info section, click Edit. Check if the address is correct, then click the X to exit.
  4. From the Employment details section, click Edit. Scroll down and check if you don't have the Illinois location.
  5. If you're not using the work location, you can delete this by clicking the pencil icon.
  6. Scroll down, click Delete work location, and click Save.

 

Also, since your employee is no longer working for you, it's best to change their status into terminated so they will no longer be active or eligible for future pay runs. 

 

On the other hand, if it's verified that you have the correct status and address, I recommend contacting our payroll support so they can investigate why this is happening on your end. 

 

Additionally, you can access this material if you have an employee that need some changes in QBO Payroll: Edit or change employee info in payroll

 

Please let me know if you have additional questions regarding this, JAG16. 

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