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SES6335
January 4, 2023
Question

Local Employment Taxes in QBO

  • January 4, 2023
  • 1 reply
  • 0 views

We  are a service company that just started with QBO.  We are based in Kentucky and the law requires us to withhold employment taxes from the employee in each City or County they work in.  The issue we have is that a majority of our employees work in several cities or counties a day.  I have spoken with support services and they keep telling me I need to change the unemployment rate each day.  Which is wrong because unemployment rates have nothing to do with local employment taxes.

 

How do I set up the following employment taxes to be deducted from the employee?

Example: on Monday John Doe works in the following counties in Kentucky:

2 hours in Lexington

2 hours in Louisville

2 Hours in Owensboro

1 hour in Bowling green

1 hour in Paducah

 

Each  city has a different employment tax rate.  How do I set this up in Quickbooks online?  Can anyone PLEASE help?

1 reply

LieraMarie_A
LieraMarie_A
January 4, 2023

Thanks for reaching out to us, @SES6335.

 

If an employee work in more than one state during a given period, he/she may be subject to State Unemployment Insurance (SUI) or local taxes in each state they work in. Our payroll products can handle only one SUI tax or local tax jurisdiction per employee. We don’t recommend using any workarounds as this can cause issues with your state tax forms.

 

I encourage you to add your vote for this one by sending a feature request in the Feedback section within QuickBooks. Our product development team reviews all the feedback we receive to ensure we’re meeting the needs of our customers.

 

Here's how:
 

  1. Select the Gear icon at the top, then Feedback.
  2. Enter your comments or product suggestions then select Next.
  3. You'll be provided a list of suggested Help articles related to your comment. You can read through them or select Skip and send message.
  4. From the drop-down, choose the appropriate category, then select Send message.

 

For your reference, check out this link: How to Submit Feedback.

 

You may also check out these articles for more information about multistate employment situations:

 

 

Feel free to reach out to us if you have any other questions. We'd be happy to help. Take care always!

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