Allow me to share some insights about setting up tax deduction for your employee's.
It's possible for employees to work in multiple states for the same employer in QuickBooks Online (QBO) Payroll. This means that an employee could work in different states within the same pay period. If your employee works in multiple states, they may be subject to different state unemployment and local tax withholdings based on whether they are a resident or non-resident of those states. To modify their current address, follow the steps below:
Go to Payroll, then select Employees.
Select your employee.
From Employment details, select Start or Edit.
From the Work location dropdown, you'll see a default work location (usually your company's address). Select an existing address, or +Add work location.
If you selected add work location, enter the physical address where your employee works and select the correct address from the list. Don't use a P.O. Box. The physical address help us determine the correct taxes.