CONTRACTORS RESIDING AND LIVING IN US VIRGIN ISLANDS WHEN SETTING UP NO OPTION TO ENTER STATE AS "VI"

The most important aspect of this request is not whether payroll taxes and form are compliant - but instead, why can the virgin islands not be added to the list of available address.  It would be super helpful to be able to add correct address to an employee, customer, or vendor.

Hi Debra,

I understand the convenience if QBO will recognize a U.S. Virgin Island address or all the U.S. territories.

The reason behind this is that we only provide services in the United States, especially Payroll. That’s why QB can’t identify VI as one of the 50 states. However, you can still put VI in the State field of a vendor or a customer address, but not on employees. 

I recommend sending feedback from your QBO company about this, so our engineers will become aware of your scenario. I'll do the same thing on my end. Just click on the Gear icon and choose Feedback.

If you have other questions in mind, feel free to go back to this thread.

I was able to enter VI for non-employee contractors when setting them up as a Vendor. However, when I attempt to Prepare 1099s for reporting, the State field ignores VI and is wanting me to select one of the 50 states. This issue is not related to Payroll. I believe I still need to send 1099s to VI contractors who are not employees and meet the pay threshold.

Thanks for hopping into this thread, @REgal4. Though you can enter VI during the contractor setup, the system won't accept this when filing because this isn't supported. 

I understand you'll need to file 1099 for your VI contractors. I'd suggest following my peer @JessT's recommendation to send feedback. The more we get requests from users, the more our engineers will look into this for consideration in the next updates. 

For future reference, read through this article to get answers to your 1099 questions.

Visit and post again if you have additional concerns. I'm always around here to guide you more. 

I don't understand why the Virgin Islands cannot have online payroll capabilities. On the desktop, payroll is available but with limitations such as not having the VI state code. The VI mirrors the tax codes of the US mainland with the exception that the Federal withholding remains in the Virgin Islands. There has to be a better way. What would it take for the engineers to give the VI more consideration or are they waiting for another company to step up to the plate and develop it first? Is the VI too small for such consideration or not cost-effective for the developers?

I know that this process hasn't been easy for you. Accsolv,

I understand how the payroll feature can help you in managing your employees and contractors from US Virgin Islands. To help improve your experience in QuickBooks Online. I'd recommend sending feedback to our Product Development Team. We're always taking note of our customers' requests/ideas and take them into consideration when prioritizing feature development. Here's how:

1. Go to the Help menu.
2. Choose Send Feedback Online.
3. Select the Product Suggestion from the dropdown menu.
4. Follow the on-screen instruction, then enter your product suggestions.
5. When you're done, click Send Feedback.

For more tips on running and handling your payrolls in QuickBooks Desktop, you can browse a topic from this link: Help on common payroll topics.

Don't hesitate to visit this thread again if you have follow-up questions. I'll be around to help.