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March 7, 2024
Question

How do I add extra withholding for local city taxes?

  • March 7, 2024
  • 1 reply
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1 reply

March 7, 2024

Hi there, preacher.

 

Thank you for reaching out to the Community. We can only have one withholding for local city taxes in QuickBooks. The local taxes are based on the employee's work and home locations set up in the system. QuickBooks Online automatically calculates the applicable local taxes based on the employee's location and withholds the appropriate amount from each paycheck. 

 

To set up your employee's local tax:

 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. In the Local Taxes section, select the applicable local taxes.
    • If you don't see the expected local taxes, select Edit location. Enter the city and ZIP code combination for the local tax jurisdiction you need. If you're in PA, you can enter the specific PSD code.
  5. Tap Save.

 

 

 

You can refer to this article for more detailed information: Set up local taxes in QuickBooks Online Payroll

 

Moreover, you can visit this handy article to help you manage pay schedules in QBO: Set up and manage payroll schedules.


We'll be happy to have you here again if you have additional questions or tasks you'd like to perform inside QuickBooks. Keep safe, and have a great day!