Overview

This article explains how to change state taxes for an employee.

Expected Outcome

You will change your employee's taxes.

Assumptions

You have registered for an Agency Identification Number if adding a new state.

Details

Note: If the employee was set up and paid under an incorrect state, you will need to contact QuickBooks Desktop Payroll Assisted at 888-712-9702 to make corrections to previous payrolls. In some cases, amendments to the state and W-2 tax forms may be required.

Change or add taxes to an employee.

Note: When you set up an employee in a new state, you will be prompted to set up the state taxes if the information is not already entered. Follow the prompts to set up the new state tax items. If you do not enter a state ID for a tax item, QuickBooks Desktop will display the following message: Does either of the following apply to your company:

  • I am in the process of applying for my state tax ID
  • My company is exempt from this tax
  • If you have your state tax ID, click No and enter the ID number. If you are in the process of applying for the state tax ID number, click Yes to continue.
  1. In QuickBooks Desktop, choose Employees > Employee Center.
  2. Double-click the employee's name.
  3. Click the Payroll info tab.
  4. Click Taxes.
  5. Click the Federal tab, and make any necessary changes. You cannot change Medicare, Social Security, or Federal Unemployment Tax.
  6. Click the State tab, and make any necessary changes to the State Worked or State Subject to Withholding areas. Do not uncheck SUI or SDI.
  7. To change local taxes, click the Other tab.
  8. Click the Item Name column.
  9. Click the drop-down arrow, and select the local tax you want to add.
  10. Click OK to return to the Edit Employee window, and then click OK again.