State withholding taxes are deducted based on the address entered on employees W-4 in QuickBooks. Make sure to set them up correctly for the system to take out the amount on their respective paychecks.
From the Employees List, select an employee.
Click the Edit employee button under the name.
Under What are Employee’s withholdings?, click the pencil icon.
Enter employee’s W-4 information.
On the Filing status drop-down, choose the right option.
Fill out all necessary information.
Hit Done. Follow the same steps for the rest of the employees.