We have an employee who is set up to have Kentucky, Louisville, and Jefferson County taxes withheld from his paycheck but only the Kentucky taxes are being withheld. Why?

Welcome to the Community, @gmarks195. 

I’ll provide some details about your query with local taxes and make certain to fix this. 

If you’re unsure about setting up local taxes for those two counties that aren’t withheld, I recommend reaching out to your local state agency to get the most accurate details of which local taxes your employees need to pay. Once verified, you’ll want to check if you’ve entered the correct USPS Address and ZIP code for those counties.

For more details about setting up local tax withholding for your employees, you can check out this handy guide here: Set up local taxes in Online Payroll. 

Moreover, you can take a closer look at your business and payroll information by pulling out this resource: Run Payroll Reports in QuickBooks Online. 

Keep me posted if you still have questions or concerns with your local taxes in QuickBooks Online Payroll. I'm always here to help. Have a good one.