1. Open AMS Payroll to the desired payer.2. Click Payer>Payer Edit>State/Local Edit.  Click on the New tab This will create a new State/Local Edit screen with a new letter designation. (i.e. A, B,C, etc...) Simply enter the abbreviation of the new state you wish to add.Now when you enter payroll checks make sure you use the new state's letter designation for the "State Code". See the Help section in the 1099-Etc software for more information on entering payroll.