Hello there, crobertson1. Yes, both taxes can be withheld. Since New York and New Jersey don’t have a reciprocal tax agreement, just make sure the home and work addresses are set up correctly in the profile to trigger both withholdings.
To make sure the system is ready to pull both taxes, follow these quick steps:
Click the Gear icon, then select Payroll settings.
Find the New Jersey tax section and click the pencil icon to edit.
Double-check that the info is correct, then click Save.
Repeat these steps for the New York tax section.
Click Done.
After updating the settings, you can preview a check to confirm everything calculates correctly, no need to process a real payment.
Go to Payroll, then Overview, and click Run payroll.
Select your pay schedule and click Continue.
Set your Pay period date.
Look for the three dots under the Actions column (bottom right) and select Edit paycheck.
Scroll down to Employee taxes, you should see line items for both NY Income Tax and NJ Income Tax.
Just a heads-up, don’t save or submit this. We’re just doing a quick sanity check to make sure both states are showing up as they should.
Once you see both listed, you’re all set. If you need any help, our QuickBooks Live Expert Assisted team can guide you with one-on-one support tailored to your business.
Feel free to reply below if you have further questions or clarifications. We’re here to help.