I'll help you set up your employee payroll information in QuickBooks Online.
It can be challenging to determine the correct state and local taxes, as each state and situation is unique. I recommend contacting the state withholding, unemployment insurance, and local tax agencies in the areas where your employees reside and work. They can provide guidance on which taxes apply to you and assist you with obtaining the necessary account numbers for tax payment and form filing.
Here's how to set up tax withholding:
- From the left menu, go to Payroll, then Employees.
- For new employees, select Add an employee. If a current employee relocates to a different state, please choose the employee from the list.
- From the Employment details section, you can choose to Start or Edit. Then, you need to select or add the work location where State Unemployment Insurance is required to be paid. If you have remote employees, the work location may be different from where your employee physically works. Then select Save.
- From Tax withholding, select Edit. Go to the State withholding section. If you see two states:
- If you don’t need to collect state withholding in one state: in the Filing Status ▼ dropdown, select Do not withhold (exempt).
- If there is a reciprocity agreement between the two states, indicate whether your employee has provided you with a Certificate of Nonresidence form. This form helps determine the State Withholding that should be collected.
- If you see a Local Taxes or Other Taxes section, select the applicable taxes and enter the rates.
- If you or your employee are exempt from any taxes (not common), from Tax Exemptions, select the applicable tax(es).
- Select Save.
For future reference, you can read this article to learn more about managing work locations in QuickBooks Online Payroll: Set up and manage work locations in QuickBooks Online Payroll.
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