how to set up multi state payroll and multi state withholdings with exemptions to compute proper withholdings when earnings are in multiple states.
Using 2009 Premier Accountant Edition - can not believe that wages earned in more than one state can not be entered along with the appropriate state by state withholding.
Quickbooks does not do a very good job if you have Employees that work in multiple states during the same payroll period date.
Each paycheck can only have a single state designated as the "State subject to Withholding". So if you need to record and withhold wages for an Employee in two states in the dame pay period then you can create two paychecks.
You can create one paycheck with only the hours worked for State 1.
Then you can change the Employee Record for State 2 as the "State subject to withholding" and create a second paycheck for the hours worked in that state.
This method is certainly not perfect (Federal income tax may be under withheld since the total pay period amount is being spread across two paychecks) but it is one way to do it.
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Thanks.
