On the Federal Side you would still want to use the 2106 for the Employee Business Expenses, however at the top in the Form 2106 Part I Smart Worksheet you would want to check box C5 to indicate this Form 2106 has expenses for "Miscellaneous 2% itemized deduction (State Only)". Once this is checked the program knows to not include it on the Federal Return, but to pass it through to the states.