Hello Reba1, we also own a small business in WA with WA based employees and sometimes have labor in OR.  I have to input OR hours first and take a snapshot of the OR taxes for withholding and transit tax; then enter the rest of hours for WA and override the OR withholding & transit tax to reflect actual.  It is such a hassle, has anyone gotten back to you on your question, any tips you might be willing to share?  Or did you ditch QB and use a different payroll software that can handle multi-state deductions?   

thank you.

Kristen