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Yes, ezPaycheck can work for businesses that have employees in different states.

You can specify the state tax option when you add an employee.

view step 3.1
https://www.halfpricesof...oftware/add-employee.asp 

Thank you.
If you have further questions, please contact us directly at services@halfpricesoft.com
Small business payroll & tax software solution
http://www.halfpricesoft.com 
I am a current software user, and I have a question. Does software have
capability for multi-state with holdings? I am not able to see or add other
states to an employer set up.
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Respectfully,