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patwp
Level 1

Payroll Taxes

We have one work location (State A), and all employees perform their duties in State A.  One employee moved to State B and their home address was updated in QB.  QB Payroll is now generating a request for State B's employer withholding and unemployment account #.  Since the employee does not perform services in State B, the employer does not have payroll nexus and no registrations are required.  There is no place in the software to indicate the employer does not have nexus. In addition to the tax registrations, the QB payroll system is automatically charging our account a fee for multi-state payroll services.  The only work-around solution provided by QB support was to change the employee's home address to address of the work location, otherwise the $12.00 monthly charge will continue to occur.  This might solve one of QB's design problems but doesn't take into consideration that State A has local income tax withholding requirements and W-2 mailings are based on the employee's home address.  Does anyone have a better solution for this?  Or is outsourcing to a different third-party payroll solution a better option? 

1 Comment 1
Rea_M
Moderator

Payroll Taxes

We'll provide a solution for managing your payroll taxes correctly in QuickBooks Online Payroll (QBOP), patwp. I'll share the details with you below.

 

We agree with the workaround provided by our QuickBooks Support to stop the $12.00 monthly charge for the multi-state services. However, for your employee's work location and home address details, I suggest seeking advice from your accountant, the state agency, or a payroll expert to ensure an accurate determination of your payroll taxes.

 

Once everything is all set, you may want to run, print, and customize payroll reports to view useful information about your business finances and employees. To guide you on how to do this, please see this article: Access payroll reports.

 

If there's anything else we can help you with about payroll taxes and employee details, please let us know in the comments. I'll be here to assist.

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