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January 11, 2024
Question

I have PA Local Service Tax (LST) set up as "Other Payroll Deduction" in QB, however the deduction does not show in box 14 of employee W-2. Shouldn't it?

  • January 11, 2024
  • 1 reply
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I contacted support and they said it is not required to be displayed on employee W-2...however how would the employee know if it was deducted for them otherwise? Every company I have worked for in PA shows it on employee W2. Am I the only one having this issue?

1 reply

January 11, 2024

Hello there, Hess2489.

 

I'm here to provide some helpful information about box 14 on the W-2 form. 

 

This box is typically either left blank or contains optional data, and it displays additional taxes or deductions that are not covered elsewhere. Some examples of what might appear in this field include withheld state disability insurance taxes, union dues, nontaxable income, and education assistance payments.

 

 it seems that you've set up the PA Local Service Tax (LST) as an Other Payroll Deduction. This is why it's not showing up in Box 14. To make sure that local taxes are displayed on your W-2, I suggest that you double-check your setup. You can refer to this helpful article for guidance on how to set up local taxes in QuickBooks Online Payroll.

 

If you need additional assistance, our Payroll Support Team is available to help. They can guide you through the process and check the information on your W-2 form through a screen-sharing session. 

 

To reach them, click the ? Help button at the top-right corner of your QBO account and select Contact Us to talk with a live agent. Ensure to review their support hours to know when agents are available.

 

For future reference, here's a great resource to help you close out your current year and prepare for the new year in QuickBooks with your accountant: Year-end checklist for QuickBooks Online Payroll.

 

Please don't hesitate to let me know if you need further assistance or if you have any other questions. I'm here to help!

Hess2489Author
January 11, 2024

I set up PA LST according to the document QB support provided. 
https://quickbooks.intuit.com/learn-support/en-us/help-article/payroll-additions-deductions/set-pa-local-services-tax-lst/L6pTUbdxG_US_en_US

 

I’ve contacted support 3 times, the first two were no help to me as they kept sending me the above article. The last contact said it was not required to be on the W2. It needs to be. Employees need to see it was deducted when they do their taxes. If it’s set up as l”other deduction” it should show in the “other deduction” box 14.