Does the first part of Wages (section 1)  have the state abbreviation?  OR scroll down to Electronic Filing in the wage section and make sure the state abbreviation is in the first box there.  Those are the only places I can think of, assuming you set up the state in Client Information, section 1.

Good luck!

See image - Be sure to fill in the grid with ONLY 15 St and 15 Employer ID

Thanks to everyone!  I think I figured out what happened.  Client attempted to 'update' information and added a new line for the State abbreviation and state tax ID number.  I simply deleted the w-2 from the input screen and re-entered.  I'm good to go now. 

thanks!

-Paul