cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

Employee living and working in another state - Does withholding and unemployment automatically calculate for new state?

We have a corporate office in Utah and an office in Colorado just opened. We have employees who live in CO and work in that office which opened. I understand how to select CO as the withholding state in the taxes tab when I set up their employee profiles and to make sure SUI is checked.  (Using Quickbooks Desktop Pro.)

 

I have a few questions about this: 

Will Quickbooks automatically know the withholding rate and SUI rate for Colorado for those particular employees and apply CO withholding rate, etc to their paycheck (and NOT Utah rates?)

 

Also, after selecting CO as their withholding state, will Quickbooks have Colorado withholding rate listed in the payroll liabilities tab automatically? I do have a Colorado withholding account set up already. Do I need enter this account anywhere in Quickbooks?

 

Do I need to run two separate payrolls? One for the Utah employees and one for the Colorado employees? Just wondering. I have no idea how to do this. Not a Quickbooks or payroll expert. (The source whom I was going to ask these questions is on bedrest and will have her baby anytime.)

 

Payroll is on Feb 20th, so an answer before then would be very appreciated! 

Thanks,

Katrina

Solved
Best answer 02-16-2019

Accepted Solutions
QuickBooks Team

Re: Employee living and working in another state - Does withholding and unemployment automaticall...

Hello there, mtnwestpropane!

 

I'm glad you're using the Community space to clarify the tax of your employees in Colorado. And, congrats on your new office!

 

As long as you choose CO as the withholding state and yourpayroll is updated, you're good to go. QuickBooks will calculate the withholding and the SUI in Colorado when you create them paychecks.

 

On your second question, you don't need to set up an account, but you'll have to set up a payment schedule (ex: monthly, quarterly, etc). That way, days before due date, you'll see how much you need to pay for CO withholding in the Pay Liabilities section.

 

On the third question, you won't need to run a separate payroll for your Utah employees and Colorado employees. You pay them all at once.

 

I've got you some articles about employee working on a different state for additional reference:

We're just around if you need anything else. Have a good day!

4 Comments
QuickBooks Team

Re: Employee living and working in another state - Does withholding and unemployment automaticall...

Hello there, mtnwestpropane!

 

I'm glad you're using the Community space to clarify the tax of your employees in Colorado. And, congrats on your new office!

 

As long as you choose CO as the withholding state and yourpayroll is updated, you're good to go. QuickBooks will calculate the withholding and the SUI in Colorado when you create them paychecks.

 

On your second question, you don't need to set up an account, but you'll have to set up a payment schedule (ex: monthly, quarterly, etc). That way, days before due date, you'll see how much you need to pay for CO withholding in the Pay Liabilities section.

 

On the third question, you won't need to run a separate payroll for your Utah employees and Colorado employees. You pay them all at once.

 

I've got you some articles about employee working on a different state for additional reference:

We're just around if you need anything else. Have a good day!

Not applicable

Re: Employee living and working in another state - Does withholding and unemployment automaticall...

Thank you JessT!!!

 

Yes, I update my payroll every time there's an update.

 

I will look into the payment schedule answer in the payroll liabilities tab for that part of my questions. If I have any questions about that specifically, I'll start a new topic.

 

You answered all my other questions perfectly, thank you!!!

 

It's been a crazy month so far with the additional office and since I'm not a QB expert, I really appreciate being able to come here and get some help because I have no time to really research. I asked our accountant for help, but he wasn't any help.

Not applicable

Re: Employee living and working in another state - Does withholding and unemployment automaticall...

Thank you JessT!!!

 

Yes, I update my payroll every time there is an update. So I'm good there.

 

I will look into the payment schedule for the CO tax liability with the article you shared. If I have any specific questions about that, I'll start a new topic.

 

You answered everything perfectly! Thank you!! 

 

Thanks for the congrats. It's been a crazy month so far with the additional office and I am not a QB expert and our tax accountant wasn't much help either, as far as what to do in QB. I'm glad to be able to ask a question here and get a really good answer! 

QuickBooks Team

Re: Employee living and working in another state - Does withholding and unemployment automaticall...

You're very much welcome, mtnwestpropane!

 

I feel so excited for your business. I hope to see more expansions in the near future.

 

Feel free to visit us back here when you have questions. We'll be more than happy to assist you!

Need to get in touch?

Contact us