Our company and employee's work location are in SC. The employee only resides in NC. Why is QuickBooks requesting NC withholding, unemployment accounts, and POA forms?

QBO depends on state and IRS regulations for payroll taxes, which vary based on the employee's residence and work location. QuickBooks requires NC withholding, unemployment accounts, and POA forms for employees residing in North Carolina (NC) to ensure compliance with state tax laws. 

Even if work is performed in South Carolina (SC), NC may still mandate withholding and unemployment tax registration. The POA forms authorize QuickBooks to act as your payroll agent in NC for proper tax management.

For the time being, I suggest contacting your state agency for further discussion.

You can refer to this article for more information on setting up the correct payroll taxes when an employee moves or lives in a different state: Set up employees and payroll taxes in a new state.

If you have any other payroll questions, feel free to leave a Reply below.