USA W-2 W-3 form to be sent to each state?

My payroll tax accountant tells me that we have to send W-2 & W-3 to each state we operate in. This is in addition to sending it to the Federal Authorities. Is this correct? If so what is the best way to generate magnetic W2? The standard report has no “State filter”. Thank you.

W-3: Add the field “State” to the employee tab to filter by state. W-2: verision <3.60 uses report 10429: W2 Magnetic Media (TIB4). version >=3.6 uses report 14020054: W2 Magnetic Media (MMREF1).