Can I refund Local Payroll Tax that was withheld and remove the local wages related to these taxes from an employee's record so that it does not appear on their W-2 form?

Hello there, @AngieC5.

I'll ensure to provide information on how you can handle this type of concern in QuickBooks Online (QBO).

In this case, refunding an over-withheld or collecting under-withheld taxes on the next paycheck can be done after you adjust or correct your Employee's paycheck. However, you'll need to reach out to our Payroll Support Team to fix the wage and the tax amount discrepancy. This is to ensure the accuracy of your accounts and only our support can securely check your account set up. 

You can follow the steps below to connect with them:

1. Sign in to your QuickBooks Online (QBO) account.
2. Click the Help button.
3. In the QuickBooks Assistance chatbox, select Talk to a human and choose I still need a human.
4. Then, hit Contact Us.

Please check out this article for QuickBooks support hours: Contact Payroll Support in QuickBooks Online.

Furthermore, in case you want to run payroll reports in the future, you can refer to this article: Run payroll reports

Keep me updated if you have follow-up questions, especially with managing payroll in QuickBooks. I'm always here to help you. Have a good one!