Hello, drclink.
Thanks for reaching out to the QuickBooks Community. Allow me to share some information about the error you encountered when entering an address in QuickBooks Online.
Are you still on the initial setup when adding your employee’s work location? There's a possibility that the primary state location is defaulted to California and is causing the error prompt.
I’d suggest you contact our Payroll Support for assistance in changing the primary work location. Once the change is made, they can as well help you complete the payroll set up.
Here’s how you can reach support: https://community.intuit.com/browse/standalone-intuit-payroll-contact-us.
If payroll is already set up, follow the steps below to add/change the primary work location:
1. Click the Gear icon at the top.
2. Select Payroll settings.
3. Choose Work Locations.
4. Click Add a Work Location.
5. Add the new work location, and then Save.
For additional information, you may take a look at this article: https://community.intuit.com/articles/1763384.
That’s it. Please let me know if you need anything else. I’ll be here to help. Enjoy your day!