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thriftstore
Level 1

state taxes

Our Business is in GA, I have a new employee that a military wife of active duty and they claim NC state of residency. She will be GA state tax-exempt, when I put her address information in QB should I do the one for GA or NC? She currently lives in GA and works in GA.

2 Comments 2
DivinaMercy_N
Moderator

state taxes

Hello there, @thriftstore. I'd be glad to share some details on how you can set up your employee address in QuickBooks Online (QBO). 

 

To ensure we'll get the correct information. Let's first verify the address entered in your employee's W-4 form. If confirmed that their state residency is in North Carolina (NC), you can set this up in QBO. Here's how:

 

  1. Navigate to the Payroll menu and choose Employees.
  2. Locate the employee you need to edit and click the name. If you haven't added this employee yet, just click the Add employee button.
  3. Next, go to the Personal info section and select Edit.
  4. Then, scroll down to the address field and input their residency address (NC).
  5. Once done, select Save.

 

When finished, you can now enter your business address as their work location. For reference, check out this article: Set up and manage work locations in QuickBooks Online Payroll.

 

After that, you can refer to the following to ensure she is exempted from Georgia (GA) state taxes:

 

  1. Go to the Payroll menu and select Employees.
  2. Next, open the employee profile.
  3. Then, navigate to the Tax withholding section and click Edit.
  4. Scroll down to the State withholding and choose Do not withhold (exempt) in the Filing status field. 

 

Should you have any other questions or concerns about managing your employee's profile, please add a reply below. I'll be here ready to lend a hand. 

Tnslifka
Level 2

state taxes

I'm curious if this resolved your problem. I've spent hours on the phone with support only to be told that it is a technically impossible thing for their system to do. My unemployment taxes need paid to the state I work in, but my income taxes need paid to the our HOR. The system can exempt me from paying income taxes to the wrong state, but CAN NOT allow me to pay taxes to the correct state. 

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