Home / , / I have an employee that has worked in one state most of the year, but is moving to another state for the remainder of the year, how do I handle the State taxes?

I have an employee that has worked in one state most of the year, but is moving to another state for the remainder of the year, how do I handle the State taxes?

Windows and Mac versions 7.7 and higher:

From the Command Center, choose Employees, select the affected employee from the list on the right and the Taxes tab. Change state withholding table and SUTA state, if applicable. The Payroll program will keep information for up to two states on each employee for W-2 purposes.

The SUTA and State Wages report will include the employee information with an asterisk (*) next to the employee’s name and display the information for both states assigned to the employee.

At the end of the year, the employee’s W-2 will print with wages, taxes withheld and each state ID number that was assigned to the employee during the payroll year. The W-3 will indicate that wages were withheld from more than one state by placing an “X” in box 15.

Windows Version 3.9-4.0x /Mac Version 6.5-6.6x

Go into the Employee Setup screen and change the state withholding table and SUTA state, if applicable, in for the affected employee. The Payroll program will keep information for up to two states on each employee for W-2 purposes.

The SUTA report, if the SUTA state changed for the employee, will include the employee information with an asterisk (*) next to the employee’s name and display only the information for the current SUTA state assigned to the employee.

At the end of the year, the employee’s W-2 will print with wages, taxes withheld and each state ID number that was assigned to the employee during the payroll year. The W-3 will indicate that wages were withheld from more than one state by placing an “X” in box 15.

Windows Version 3.8.x /Mac Version 6.4.x or lower:

Before you do a payroll for the employee in their new state, you need to set the employee up a second time (make the name different by either adding the middle initial or taking it away).

Assign the new state to the new employee and do payroll as usual. However, if this employee is close to the Social Security Maximum or FUTA maximum, you will need to keep track of this manually so you can stop those calculations when they reach the maximums.

At the end of the year, you can either print two W2s for the employee, or go into the employee YTD setup and combine the two with the exception of the State. You will need to hand type the 2nd state on the W2.

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