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Intuit

Set up payroll taxes in a new state

Learn what to do in QuickBooks and Intuit Payroll when an employee starts in or moves to a new state.

When you hire a new employee who lives and/or works in another state, or an employee moves to a new state, you may be required to pay payroll taxes to that state. We help you with resources to determine if you need to pay and how to get them set up in your payroll product. Let’s get started.

Step 1: Determine if you are required to pay new state taxes

State payroll taxes are complex and every employment situation in a new state is different. The best way to find out if you need to pay taxes in a new state is to contact the state agencies directly. You can also consult with an accountant or tax advisor.

Here are some additional resources.

Step 2: Apply for you new state account numbers

If you are required to pay taxes and file forms in the new state, you’ll need to apply for your account number(s).

When you apply for your account number, you’ll also need additional info to set up your new state in your payroll product. You’ll only need the info for the taxes you are required to pay.

State tax list

State Withholding (or Income Tax)

  • Account number
  • Deposit frequency, or how often you are required to pay this tax

State Unemployment (SUI)

  • Account number
  • Unemployment rate
  • Tagalong or surcharge rate, if applicable

Other taxes (State Disability or Paid Family Leave)

  • Account number
  • Rates

Local taxes

  • Account number
  • Deposit frequency, or how often you are required to pay this tax
  • Rates

Step 3: Set up your new state taxes

You can set up your state taxes without your account numbers. You can add those when you get them. However, if you use one of our full-service payroll products, we may not be able to pay taxes or file new forms for you until you provide the account numbers. We will let you know if you need to make tax payments.

Select your product below to set up your state taxes.

Note: Don't know which payroll service you're using? Find out which payroll service you have.

Step 1: Add your new employee (if you haven’t yet)

Follow the instructions in Add or edit an employee.

Step 2: Enter your new state tax info

  1. Select Settings ⚙, then Payroll Settings.
  2. In the section titled [State] tax, select Edit ✎ on your new state added. If you do not see this section, see If you don’t have the [State] tax section in your payroll settings below.
  3. Enter the info applicable to the taxes you are required to pay. If you are not required to pay a tax, leave the account number field blank and enter 0 for any rates.

If your employee is subject to local taxes

  1. Select Settings ⚙, then Payroll Settings.
  2. Select Local Tax Jurisdictions.  If you don't see this section, contact us for help setting up your local taxes.
  3. Enter your account number and pay frequency.  If you are not required to pay, leave the account number field blank.

If you don’t have the [State] tax section in your payroll settings:

  1. Select Payroll, then Overview.
  2. From your To Do List, look for the Provide critical tax information ASAP task and select Let’s go.
  3. Select Provide critical tax information ASAP again. Enter the info applicable to the taxes you are required to pay. If you are not required to pay, leave the account number field blank and enter 0 for any rates.
  1. Select Employees, then Employee Center.
  2. Select New Employee and enter employee info.
  3. Select the Payroll Info tab, then select Taxes.
  4. Select the State tab and select the appropriate State Worked and State Subject to Withholding. You’ll see a prompt to set up your state tax item. Select Set up.
  5. Follow the instructions in the state setup wizard to set up your item, then select Finish.
    Note: If you are not required to pay a tax, leave all fields blank.
  6. Select the Other tab. You may be prompted to enter an additional state tax item.
  7. Once you are back in the Other tab, select Ok. If there are any surcharges or other taxes for the state, you will see a prompt asking if your employee is subject to any of them.
  • If the employee is subject to one or more of the taxes select Yes. From the Other tab, remove any that do not apply by selecting the item, then Delete.
  • If the employee is not subject to any of the taxes, select No.

If your employee is subject to local taxes, set up the local tax items.

  1. From the Other tab, click any blank area inside the Item Name box. Select the dropdown, then select Add New.
  2. Follow the instructions in the wizard to select the type of local tax, enter your account number, and rates.

Note: You are responsible to pay local taxes and file local tax forms manually. We do not support local tax payments or filings through any QuickBooks Desktop product.

If you use Intuit Full Service Payroll, contact us so we can help you set up your new state.

If you use Intuit Online Payroll Enhanced

  1. Select Setup.
  2. Under Taxes, select State Taxes - [State].
  3. Enter the info applicable to the taxes you are required to pay. For anything not required, leave the account number field blank and enter 0 for any rates.

If your employee is subject to local taxes.

  1. Under Taxes, select Local Tax Jurisdictions.
  2. Enter the account number and select your deposit schedule (how often you are required to pay taxes).

Step 4: Sign new state authorization forms

Depending on your payroll service, you may need to sign authorization forms for your new state.

You’ll see a To Do in your Payroll Overview to e-sign authorization forms.

If you use QuickBooks Desktop Payroll Assisted, you’ll receive an email with the authorization forms and instructions to sign and send in.

If you use QuickBooks Desktop Payroll Basic, Standard or Enhanced you are not required to sign authorization forms.

You’ll see a To Do on your Home Page to complete e-services setup. Select that link to download and sign your authorization forms, then upload.

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