@kranthinv - that 'work location' indicator in a payroll system is normally what triggers the withholding in a particular state. That work location is a physical location. And since they have a VA residence address for you, I can understand why they are withholding in both states.
If it is not resolved, it will be resolved on your tax return. You will complete a NC tax return as a non-resident. Then you will complete a VA tax return. Whatever the tax paid to NC is (and this is not the withholdings on the paycheck) becomes the basis of a credit on the VA tax return, so you are not taxed twice on the same dollar.
Since they have already withheld taxes in both states, even if resolved, you'll have to file in both states in any event for 2022.
