This article explains how to change an employee's local taxes.
Note: If you have Assisted Payroll, you will need assistance from an Intuit customer service representative to change your employee's local taxes. Contact us.
To change an employee's local taxes:
- Go to Employees menu > Employee Center.
- Double-click the name of the employee.
- Click the Payroll Info tab.
- Click Taxes.
- If the employee is exempt from standard taxes, click the Federal tab and click to clear Enforce Standard Taxation before clearing or adding any taxes.
- For federal taxes, click to select or clear the appropriate box in the Subject to section.
- For state taxes, click the State tab.
- Click the appropriate box for State Unemployment Insurance (SUI) or State Disability Insurance (SDI), or click the State Worked or State Lived drop-down arrow and select the correct state.
- For local taxes, click the Other tab. If you want to delete a tax item, highlight the item and press the Delete key.
- Press the Tab key on your keyboard until the cursor is on the first blank line in the Item Name section.
- If you want to add an item, click the drop-down arrow and select the appropriate local tax from the list.Note: If QuickBooks Desktop does not match the local tax for the employee with the state worked or state lived in, a warning message appears after you click OK.
- Some local taxes may require you to enter a tax rate. If you do not know the rate, contact your local government agency.
- Click OK > OK.
Note: If you are adding and removing assessment tax items that are part of state unemployment tax, see the article Change state taxes for an employee.