We have CA business, but hired one employee to work remotely from their home in Grand Rapids, MI. What steps do I need to take for the Local Tax?

Yes, you have to register to pay the local tax in QuickBooks Online (QBO), @Pebbles135.

Since you have already set up your State and Federal taxes, you'll want to contact your local tax agency to register and ensure you have the right local tax jurisdictions. Don't forget to get the physical address for your employees' home and work locations.

After you've registered, you can add your local tax account number and deposit frequency in QBO. Ensure that your locations are set up correctly so that the numbers auto-populate accurately.

If you’ve already run the first payroll and are adding new employees, here's how:

1. Go to Settings, then Payroll Settings. 
2. In the [State] section, select [State] local taxes.
3. Enter your local tax account number and select your frequency, then Save. 

If you’re new to QuickBooks Online Payroll, here's how:

1. Navigate to Payroll, then Overview.
2. Select Let’s Go on the Set up your local taxes task. 
3. Select Edit
4. Provide your local tax account number and select your frequency. 
5.  Hit Save. 

Additionally, please know that handling your federal and most state taxes depends on your subscription. If you're using QuickBooks Online Payroll Core or QuickBooks Desktop Payroll Assisted, you'll need to file and pay the taxes outside of QuickBooks.

On the other hand, if you're using QuickBooks Online Payroll Premium or QuickBooks Online Payroll Elite, we take care of paying and filing the taxes for you.

I'll be adding this material to help you learn how to pay and file your 941, 944, 943, 940, state, and local taxes using QuickBooks e-pay and e-file, you can refer to this article for more information: Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll

Don't hesitate to reach out to us if you have further questions about taxes in QBO. The Community is always available to help. Keep safe.