My company has multi-state filings. When an employee transfer to another state, can we set-up the new state taxes without the tax forms the employee is suppose to fill out? We have a lot of employee's that never change their tax forms when they move and we have had bad experiences at year-end when the employee has moved to another state and had the old state taxes withheld for the year. Since we know they moved, are we not liable for the tax changes as a business?

In NY you are required to have the necessary paperwork on file for State taxes - I cannot address other States.