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jb10
November 28, 2018
Solved

Local payroll tax rates in Pennaylvania

  • November 28, 2018
  • 4 replies
  • 0 views

After entering my employees addresses, quickbooks online fills in the earned income tax and local services tax rates. The rates are incorrect according to the Pennsylvania municipal statistics web page.  I called quickbooks online support and they were unable to correct the rates.Has anyone else had this problem?  Thank you.

Best answer by HoneyLynn_G

Hi there, @jb10.

 

I appreciate you reaching out here in the Community and calling our phone support.

 

Once you're subscribed with our payroll products, we make sure that the rates and taxes are in accordance with your states. The option to update the Pennsylvania (local payroll tax rate) is available with our phone support team tools.

 

For security reasons, you may need to call again for them to update the information for you.

 

Keep me posted on how the call goes or if there's anything else you need. Have a good one.

 

4 replies

HoneyLynn_G
HoneyLynn_GAnswer
November 28, 2018

Hi there, @jb10.

 

I appreciate you reaching out here in the Community and calling our phone support.

 

Once you're subscribed with our payroll products, we make sure that the rates and taxes are in accordance with your states. The option to update the Pennsylvania (local payroll tax rate) is available with our phone support team tools.

 

For security reasons, you may need to call again for them to update the information for you.

 

Keep me posted on how the call goes or if there's anything else you need. Have a good one.

 

    S
    ssullivan1
    April 29, 2019

    I am in the Erie area. Quickbooks has totally screwed up our local taxes.  I spent hours on Friday with IOP. I have sent them the information from the taxing authority. Quickbooks does not seem to be able to grasp that there can be different rates for the same PSD code depending on whether you work in that PSD code or live in that PSD code. 

    IamjuViel
    IamjuViel
    April 29, 2019

    Hello there, @ssullivan1.

     

    Allow me to chime in and furnish you with additional information on how setting up the Political Subdivision (PSD) Code works in QuickBooks.

     

    Ensure to enter your employee's home address and work location is set up accurately. Also, make sure to select two boxes in the Local taxes section, each option denotes different rates for the same PSD code.

     

    To set employees' PA local tax, here's how:

    1. Go to the Employees tab.
    2. Choose the employee's name.
    3. Click Edit in the Taxes and Exemptions section.
    4. Go to the Local Tax section.
    5. Checked the Local Taxes Based on Work Site and Residence applicable to your employees.
      • To determine the rate applicable to every employee and the corresponding 6-digit Political Subdivision (PSD) Code for where they work and live, employers must use the DCED Official Tax Register.
      • You can go to http://munstats.pa.gov/Public/FindLocalTax.aspx to verify your employee's home and work address.

         

    6. Click Ok. 

    That should do it! This will allow you to set your employee's PA local tax accurately.

     

    For additional insights, you may check out this article: Pennsylvania Act 32 Local Withholding Requirements.

     

    Always feel free to leave a post below if you have other questions about managing your employee's local tax information. I'm always here to help.

    S
    ssullivan1
    April 29, 2019

    That does not do it. The rates are incorrect for instance in our locality "PA - Erie City,Erie County" there are 2 different rates. I have been trying to explain this to you folks since the beginning of the year!! If an employee lives in Erie, PA (that is the city limits, not the mailing address) their tax rate is 1.15% unless the municipality where they work has a higher tax rate. If an employee works in Erie, PA (that is the city limits, not the mailing address) but lives in another municipality, their tax rate is .68%. Currently, Quickbooks is overwithholding on all employees that work in the city but live in another municipality. This is a known issue has been escalated. The community needs to be aware when they prepare their first quarter local tax reports that if they take the information straight from Quickbooks it will be wrong.

      D
      Dspencer1
      April 30, 2021

      I have been working all week with QuickBooks to NO AVAIL.  Local taxes stopped being taken out of 3 of my employees.  The school district and township options do not show up when you go to edit.  It simply says we do not recognize your address call our customer care team to have this issue resolved.  No one seems to know what is going on and we are told we don't have to pay local taxes or that we reached our limit of paying for the year which is not true.  I live in Lancaster County and 1% of taxable wages are to be taken out on a weekly basis.  I have talked with 5 different reps and they all go silent and leave the conversation leaving my employees having no taxes taken out of their paychecks.  Can some please help because there is NO phone number or way to contact anyone who KNOWS what is going on.

        T
        TB131
        January 13, 2023

        PA PSD 091201 went from 0 EIT to 1% effective 1/1/2023.  Quickbooks on line returns no tax still.  I was told that Quickbooks has 90 days to update.  Not effectively communicated to their support team as I spent a total of 3 hours on the combination of chat and phone.

        A
        AileneA
        January 13, 2023

        Hello, TB131.

         

        I'll take note of your experience with our customer support so we can submit proper feedback. We'd like to have this opportunity to help you in a more timely and efficient manner in the future.  

         

        Since Community is a public forum and we have limited access to your account. I suggest reaching out to our support team again. I wanna make sure this will taken care off. So it's best to reach out again to our Customer Care team. This way, they can look further into your account and help you with your tax return. To do so, please refer to these steps:

         

        1. Go to the Help menu.
        2. From the Assistant tab, enter a brief description of your concern.
        3. Then, type Talk to a human. 
        4. Click Get help from a human.
        5. Choose either Chat or Callback. 

         

        If you're looking for resources or articles you can bookmark or save for future use, you can always visit our QuickBooks Help articles page. You can manually search via entering a keyword on the search field or open any of the categories displayed to start browsing.

         

        Let me know how it goes, and if you have any other concerns by adding a comment below, I'll be always here to help you. Have a great day ahead!

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