Hi Barbara,

I would recommend setting up a second employee record for the new state, this would make it easier to combine both records at year end when doing W2s.  The only drawback to this approach is for things that have relatively low limits (FUTA or SUI for example) you may need to make manual adjustments to keep the second record from over-withholding / contributing for the remainder of the year.

Thank you.

Hi Donald,

Thanks for your suggestion.  We are a 501-3 non-profit so we don't have FUTA.  I keep a supplemental worksheet for the state unemployment -- so no problem there.  In this scenario, would I produce 2 W-2s -- one for each state.  Or produce one W-2 and show a detail of their earnings for each state and state income taxes rather than one?  Thanks, Donald.

Hi Barbara,

The W2s will combine the data from both records to produce a single W2 at the end of the year.  

Thank you.

Thanks, Donald.  I'll set up the second record.

Thanks, Donald.  I'll set up the second record.