Hello, Arun -
I looked at table T5UTI for each tax company and used the states that were configured for tax type 01. If you are doing business in a state and are withholding taxes from payroll, then T5UTI has to be configured with authorities and tax types by company. So you can ignore FED and any locals since you only want state level (no need to enter non-SIT states either).
There may be other ways to look at this, like the table for setting tax reciprocity attributes (T5UTRC), but this worked for me.
Best regards,
Anna Stevenson
Agrium Inc