GP already has the ability to collect 'Federal Tax withholding' from a payables invoice. The WHT Vendor can be set up under Tools | setup | Company | Company | Options, and then the vendor card will have WITHHOLDING button where you can activate the withholding and set the default rate on each vendor as needed. The tax is withheld during the 'build checks process', and creates an open invoice to the Withholding vendor set up on at the company level. This works great to populate the 1099-NEC form with the full amount in box 1 and the federal tax withheld in Box 4.

1. Can the same functionality be available only for a 'STATE withholding tax' where:

a. The WHT vendor would be stored on the VENDOR level, (and not the one at the company level for federal)

b. and the tax withheld would populate Box 5 on the 1099 NEC form for 'state tax withheld'? (Maybe the WITHHOLDING button on each vendor could have a checkbox for 'federal or state tax' box to populate on the 1099 forms respectively.)

Many more support cases have been coming in asking for state withholding functionality.