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kend2
January 12, 2019
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setting up school district tax payroll item

  • January 12, 2019
  • 2 replies
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When setting up an employee payroll taxes, the following question is asked:

"Is (the employee) subject to any of the following taxes?

      OH-School District"    yes-no-help

When yes is selected, it fills in an invalid school district tax, and does not provide a way of changing it to the correct school district tax.   I have several school district taxes setup as "other" "local" taxes.

There does not appear to be a way of defining the tax as an OHIO tax, only a local tax.  Should it be a "local income tax" or a "secondary local income tax"?   How can I setup the tax item so that it can be selected as a response to the previous question:

"Is (the employee) subject to any of the following taxes?

      OH-School District" 

 

Best answer by IamjuViel

Hello there, @kend2.

 

I'm here to share some information about setting up your Ohio Local Income Tax in QuickBooks Desktop.

 

For starters, local income tax is an additional impose by several states including Ohio. These are applied to people who live or work in the locality. While School District Tax is a specific local tax imposed by schools to help fund school operating expenses.

 

On the other hand, in setting up your OH-School District taxes you'll only select User-defined if you can't see the predefined tax form on the list. To search for a specific local income tax form, here's how:

  1. Go to Employees.
  2. Look for the employee you want to set up.
  3. Double click on the employees name to open Edit Employee window.
  4. Go to Payroll Info.
  5. Click Taxes button.
  6. Choose the Other tab.
  7. Click on the drop-down arrow under Item Name window
  8. Select Add new.
  9. In the Add New Payroll, click the drop-down arrow and look for OH-School District.
  10. Follow the rest of the on-screen instruction to complete the process.

I'd also recommend reaching out to your accountant or contact your Local Tax agency so you'll be guided accurately with other specific tax-related inquiries.

 

Stay in touch with me and let me know how it works on your end. I 'm always here to help you in making sure your state tax is set up properly on your end.

2 replies

JessT
JessT
January 14, 2019

Hi kend2,

 

I'm happy to share some information about the local tax.

 

We're unable to change the Other type. It's already taken as an Ohio tax based on the work location of the employee. If you need to set it as a local income tax or a secondary local income tax, I'd suggest creating your own local tax item instead. It's best if you can verify the tax tracking type with your tax agency.

  1. On the Taxes window, click the down arrow in the Item Name field of the first line.
  2. Choose <Add New>.
  3. Select whether the employee or the company will pay the tax and click Next.
  4. Enter the tax name. Ex. OH - School District Tax and click Next.
  5. Enter the details of the tax agency and click Next.
  6. In the Tax tracking type drop list, choose whether it's a Local Income Tax or a Secondary Local Tax.
  7. Click Next and select from the options on how the tax is calculated.
  8. Click Next and and enter a Default rate and limit.
  9. Click Next, and click Finish.

If you have questions, you can always go back to this thread.

K
kend2Author
January 14, 2019

Thank you for your response.  In previous years, I have entered the taxes as a "user defined" local income tax as you have suggested.  When I completed the Ohio IT-3 form this year, I had to fill in the OHIO school district taxes paid manually.  I assume if they were classified as OH-School District taxes, the form would have been filled in automatically. 

 

It is curious that it selected "Clyde" as the default school district.  The address of the business and the work place has been in Fremont for several years.  (It was previously located in Clyde.)

 

On a related note, could you explain the difference between "Local Income Tax" and "secondary Local Tax" ?  Thank you again for your help.

IamjuViel
IamjuVielAnswer
January 14, 2019

Hello there, @kend2.

 

I'm here to share some information about setting up your Ohio Local Income Tax in QuickBooks Desktop.

 

For starters, local income tax is an additional impose by several states including Ohio. These are applied to people who live or work in the locality. While School District Tax is a specific local tax imposed by schools to help fund school operating expenses.

 

On the other hand, in setting up your OH-School District taxes you'll only select User-defined if you can't see the predefined tax form on the list. To search for a specific local income tax form, here's how:

  1. Go to Employees.
  2. Look for the employee you want to set up.
  3. Double click on the employees name to open Edit Employee window.
  4. Go to Payroll Info.
  5. Click Taxes button.
  6. Choose the Other tab.
  7. Click on the drop-down arrow under Item Name window
  8. Select Add new.
  9. In the Add New Payroll, click the drop-down arrow and look for OH-School District.
  10. Follow the rest of the on-screen instruction to complete the process.

I'd also recommend reaching out to your accountant or contact your Local Tax agency so you'll be guided accurately with other specific tax-related inquiries.

 

Stay in touch with me and let me know how it works on your end. I 'm always here to help you in making sure your state tax is set up properly on your end.

S
ShyMae
August 5, 2024

Hello there, @pbales. Thank you for reaching out to us regarding the Edit Location option. I'm dedicated to helping you and providing all the relevant guidance and information you need.


Please know that this thread is specifically for QuickBooks Desktop users, and all the information provided above is intended for this specific product. The Edit Location option is available in QuickBooks Online. If you're using this, here's how to locate it.

 

  1. Go to the Payroll menu, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. In the Local Taxes section, pick the applicable local taxes.
  5. If you don't see the expected local taxes, pick Edit location.
  6. Type in the city and ZIP code combination for the local tax jurisdiction you require. If you are in PA, you can input the specific PSD code.
  7. Hit Save.|
     


For additional details, refer to this article: Set up local taxes in QuickBooks Online Payroll.

 

If you're using QuickBooks Desktop, you can edit the location on your employee's profile. I'll show you how.

 

  1. Hover to the Employees menu. Click Employee Center.
  2. Double-click your preferred employee. Head to the Payroll Info section.
  3. Press Taxes, then go to the State tab.
  4. Set your preferred location in the State Worked and State Subject to Withholding sections.
     


I still recommend consulting your accountant for further guidance and advice.

 

If you're referring to something else, I kindly request you provide a screenshot for further clarification.

 

For additional guidance on managing payroll and employees, you can refer to these resources:

 

 

Please feel free to reach out if you need further clarification. Our team is committed to ensuring that we address all your inquiries accurately and promptly. 

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