Create paychecks for employees who work in more than one state
This is not a recommended solution for calculating state unemployment taxes when an employee works in more than one state during a pay period or periodically during the year. To avoid error on your filings and for QuickBooks to properly calculate and report SUI wages and tax amounts, an employee who works in multiple states must be set up according to guidelines provided by the state.
To determine State Unemployment set up for an employee who works in multiple states, see Multi-State Employer Unemployment Insurance Requirements.
Assisted Payroll does not support this workaround.
You have an employee set up in QuickBooks and need to calculate and pay state unemployment tax in each state the employee works in.
You will create a paycheck for an employee who worked in multiple states during a single pay period.
To create a paycheck for an employee who worked in more than one state during a single pay period:
Locate the employee's record to determine which state is selected as "State Worked." Edit if necessary.
- Click the Employees menu> Employee Center.
- Double click the employee name.
- Click the Change tabs drop-down, and then choose Payroll and Compensation Info.
QuickBooks 2013: Click Payroll Info tab.
- Click the Taxes button.
- Click the State tab.
- Edit the State Worked if necessary by clicking the drop-down arrow and choosing the correct state to calculate state unemployment taxes.
- Click OK > OK.
Create a paycheck based on hours worked in both states (for example, if the employee worked 40 hours in one state and then 40 hours in another, create a check for 80 hours) and note the amount withheld for federal income taxes (FIT). You must manually allocate the FIT amount over each paycheck created for the employee working in different states per IRS guidelines.
Delete the check created in step 2, as this was created only to calculate the amount of FIT.
Create a paycheck based on the hours the employee worked in the state on the employee profile. That is, if the employee worked in state X for 40 hours, create a check for 40 hours using state X.
Manually adjust the FIT to the allocated amount determined in step 2 by overriding the amount of FIT in the Amount column of the Preview Paycheck window.
Change the employee's state information to reflect the second "State Worked."
Create another paycheck, based on hours worked, for the second state worked.
Manually adjust the FIT to the allocated amount determined in step 2.
Repeat as necessary to include each state worked within the same pay period.