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January 27, 2024
Question

How do I add locality codes to my W2s? Each employee has the name of the county in their info, but there's no where for a number.

  • January 27, 2024
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1 reply

January 27, 2024

Welcome to the QuickBooks Community, smarterfloors.

 

Let me provide insights on how w-2 codes work in QuickBooks Online and where you can manage it.

 

To start with, you have to make sure that the local tax is set up on the employee's profile in the program. 

 

Here's how:

 

  1. Go to the Payroll menu and then Employees.
  2. Choose 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, click 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. Click Save.

 

Once done, set up or make changes to your employee’s work location. This is done to help us determine which state and local taxes you're responsible for. Please follow the steps indicated in this article: Set up and manage work locations in QuickBooks Online Payroll.

 

Furthermore, please know that in Boxes 18, 19, and 20 on Form W-2, QuickBooks use the first two digits of the Zip code where the withholdings were remitted. W-2 codes are automatically added based on the setup. Withholding for employees' local taxes depends on their home (resident) and work locations. That said, manually added locality codes to W2s is no longer required.

 

In case you need steps on how you can submit your W-2 through QBO to report an employee's annual wages and the taxes withheld to the IRS, you can read this article: File your W-2 and W-3 forms.

 

Let me know if you have other concerns or need clarification regarding W-2 codes. I want to make sure everything is taken care of for you, smarterfloors. Have a great day.