How do I use payroll Online for a company based in WA and sometimes works in Oregon?

I have a client currently using TWO company files just to run their payroll and the taxes are a pain to reconcile because of it.  They are doing this so that one company file is for Washington Payroll and the other is for Oregon Payroll.  It is a Washington based construction company that does have work over in Oregon during the same pay periods.  How can we combine the two company files and run payroll for both states out of only ONE company file?  Do we need to do separate checks, one for Washington work and then a second for the Oregon hours? Will that entail changing the worksite each time on their employee file?

Answer

Hello there, gilliamml78

I can share a few pointers about combining your client’s two company files and the multistate employment payroll situations.

In QuickBooks Online Payroll (QBOP), there isn’t an option to combine your client’s two QBOP accounts. If the company file is new, we can have it canceled; then you can set up two work locations in one QBOP account and assign employees to each location. 

You can add another work location outside from your primary work-location state. However, you can’t run payroll for the 2 work locations within the same pay period.

An employee who works in a state different from your primary work-location state is subject to the work-based taxes (such as state unemployment insurance) in the other state. QBOP calculates work-based payroll taxes for each state depending on the multistate reciprocity agreements. 

Here’s how to add a work location:

  1. Go to the Gear icon at the top right, and then select Payroll Settings.
  2. Click Work Locations under Business Information.
  3. Click Add a Work Location link.
  4. Enter the new work location address, and then click Save.

Please check out the Add another work location article for your additional guidance.

Every time you run payroll, you’ll need to change the employee’s work location appropriately. There are 2 separate checks, one for WA and the other one for OR.

If the company file has payroll history, I’d suggest contacting our QuickBooks Online Payroll Support Team. They have the tools to securely access your clients two QBOP accounts and provide options on how to deal with your multistate employment payroll situations. 

To get their most up-to-date contact information, here’s how:

  1. Go to https://payroll.intuit.com/support/contact/?infoSrc=qs&service=64.  
  2. Get the phone number of QuickBooks Online Payroll

For more information to ensure you’re compliant with state payroll tax laws, you can check out the About multistate employment payroll situations article.

Please let me know if there’s anything else you need about QBOP. I’ll be here to assist you further. Have an awesome day, gilliamml78!

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